In a trice the market mood changed Thursday and Friday. Prices tore through the previous high Friday on strong power bars. It took 2 days to recover a nasty little 4 day downwave and is indicative of the latent strength of the market. This is the the fourth wavelet of this upwave and reaffirms the upwave — and what is very possibly a strengthening trend. We would not be surprised to see surging prices next week. All the major indices boomed up. The bonds sold off and gold strengthened.
If one were of a speculative bent this is tradeable. A more conservative approach would be to wait until the horizontal line is broken.
The FXE — euro — took a gap up but it always does that to dislodge up from our short euro trade. And depending on Monday’s action it may do that.
For the moment it appears that fully invested long is the way to be. Next week there will be much running about and shouting as he jobs report and the Fed action come in. Ignore it.