Tension remains high in Crimea,Ukraine as Russia continues to increase its forces. The market can decide to react to it or ignore it. On Friday, while the market was making new highs with significant gains, we saw a sharp reversal when a report came out saying Russia was staging an armed invasion of Crimea. But the market was able to stage a rally going into the close.
My point is that geopolitical events can influence the markets especially at the onset of the event. This can cause a lot of frustration to (technical) traders by altering chart setups and activating stops prematurely. So the question now becomes: How will the market respond to this tension if at all? I hope the market ignores it.
At the moment, all my charts are pointing to high prices (bullish) except SPX-WEEKLY which is currently sitting just below resistance which I expect will be taken out followed by a strong move higher starting this week. But note that all this bullishness can change in a flash just as we say on January 23rd after the China flash PMI and other emerging markets issues. So be on the lookout. It doesn't call for panic. I will just focus on what the charts are telling me at the moment. I don't trade news or my opinions. Both are useless (because they are unpredictable). I expect the market to continue higher because that is what my charts are telling me.
