4 RED AND 2 GREEN BARS

On US markets the last two days erased the whole losing previous four days. Within two days – Tuesday, Wendesday – the markets rebounded and showed their bullish attitude again. Pushed up the SP500 on record and closed at record high again and now it is close the Xmas rally high. Made at 1.850 a new intraday high yesterday.

• SP500 +0,5%
• DJIA +0,66%
• NASDAQ +0,76%

Why is this rally? Because the US fundamentals are great, the economic outlook is absolutely positive:

• US GDP growing massively
• 2 million new job was created
• Unemployment rate is falling quarter by quarter
• US interest rates are in historical low levels

The only option for the markets is going up.

Tapering concerns? Nobody cares about tapering anymore. It is already priced in - the full tapering by 2015.

European and emerging markets also did well in the last two days. Optimism is all around us.

As we forecasted yesterday the SP500 close above the support of 1.845. Now might be some correction day with a back testing of this level and tomorrow or Monday the rally goes on.

The BFM Assets Team.