TUESDAY RALLY, FOLKS!

Again and again, that is a crazy shape and paradigm of the US markets in 2014. That is a statistical anomaly, but seems very astonishing so far YTD. Tuesdays perform really well this year, but on the other hand before creating any trading strategy on that such pattern, it means nothing for the future just a small curiosity. But the Marketwatch and Business Insider created this fascinating chart.

Stocks on the Wall Street closed moderately higher yesterday again. The tech and financial sectors were leading the gain and biotech recovered well either. The US markets are pretty close again to their previous tops, it is more effective in terms of European markets, they are at upside of their range. The appetite for risk is increasing again and investors turned into RISK ON mood after the last month RISK OFF behaviour.

Technically the DJIA is pretty close to hit the previous top at 16.600. Only 100 points distance is nothing. The bulls are chasing around the block. We can find a reversal Head&Shulder pattern on the daily chart that is a good signal. If the neckline would be taken at 16.600 could come a great and eruptive rally. On the negative side if any day the index close below 16.400 is a clear signal for bears. This week we are going to have the final answer, which way wants to go the market. In my interpretation I see more possibility for the bullish rally.

The BFM Assets Team.