The market put together a very nice bounce and re-test of the October lows yesterday. In addition, all the charts showed another huge bullish engulfing pattern (see chart below). From here I hope we just keep moving up, as I am getting whipsaw from all these daily moves. 9,500 should be a safe up-side target over the next couple of weeks.
As far as the GBP long play I have, I'm still holding on tight. It's just gotten creamed over the last month or so and frankly its due for at least a modest bounce. The hammer pattern yesterday I think set in the short term bottom and I'm looking for this to make its way back to 1.53 at the very least. Granted we will also probably need some upside moves in the equity markets to help, but if it goes lower I will just add to my position.
