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Dow Model - intraday redux

Yes, the Model is a Model - a real time example of short term momentum. There was a bit of support ar 1328, and it was tested. Now it's back to neutral do down mode. We currently are at 1322, with some Fibonacci points in the 1310-1315 area.

In parrallel, the Euro-Dollar September FuturesĀ isĀ testing 1.3975, after having broken the 50% level from the February 1.34 low to the May 1.486 high. So we have two calls to make. Given the European dislocation, it seems the Euro-Dollar is the driver here - it is even taking Alcoa down more than 3% despite what is expected to be a reasonably good release after the close. Personally, see my Instablog on Europe, I don't think short term charts will help much here. The Euro is on structural downtrend. But, for argument sake, I have 1.375 as a short tem target.

This should equate into S&P 1298 or so, depending on Q2Es.