August 8, 2012 What’s the morning outlook?

The wait-n-see of yesterday meant watching the euro “hopium” drive markets higher as risk appetite was strong. The follow-through of such “hopium” discounting is usually short-lived so the question today is:

Can the Dow (risk appetite) still linger?

Early indications are for a stall and this does not automatically mean exhaustion; that’s a second step.

The European close did manage to help push the Dow higher and then next test will come as traders re-engage the markets after lunch (2:00pm EST).

I’ll be focused on the prior high and major psych level resistance at 13,151 since my positions are very much euro-weakness, risk aversion based.

I’ll be holding a special 5:00pm EST ForexPM LIVE webinar for Members tonight – hope to see you there!

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