The Venture Exchange has climbed 88 points or 7.6% from its three-year intra-day low of 1154 last Thursday (June 28), but a major test for this market – whether this could be merely another dead-cat bounce or a serious upside move with some power behind it – will come tomorrow and Friday.
The European Central Bank will be the market’s focus tomorrow. Traders and investors will be disappointed with anything less than a rate cut AND additional measures from the ECB to help ease the euro zone debt crisis. Meanwhile, a slew of economic data is due out of the U.S. Friday. So “outside forces” will definitely be influencing the Venture Exchange over the next couple of days.
Additional easing measures from China are possible and would help markets.
Below is John’s updated CDNX chart. The Index jumped another 16 points today to 1242, albeit on light volume due to the American holiday, and it’s now at an important point where it could either quickly reverse to the downside again or gain some real traction and push higher. There are some bullish indicators but they require confirmation tomorrow (Thursday).
