In certain cases, this week was characterized by vivid reversals, though, generally, there are trend continuations in some cases. Whatever happens today could be a determinant of what the major outlook for the next week could be.     

As it was expected, the corrections that happened on Monday turned out to be transitory. The markets were able to resume their dominant biases – something that is expected to continue.  

The markets have been characterized by significant reversals after they opened this week. Unless the reversals continue for a few more days, they would only turn out to be mere corrections in the major outlook.  

In the current midst of consolidations, reversals and volatility, there have been threats to some directional outlook. Bears are wielding more and more energy, but we would need to wait for confirmation before new positions are taken.

Conspicuous rallies have resumed, while the Yen and the Greenback are a kind of weak. Nevertheless, the overall biases are still valid: only sustained rallies would render the overall biases invalid.

Stocks added to their gains from Wednesday, even after the Labor Department reported 155,000 jobs were gained in December 2012.  The unemployment rate remained steady at 7.8 percent, still a four year low.

Oil inched up slightly by 14 cents to finish above $93 per barrel, but gas prices continue to go down.  The Dow increased another 43 points while the Nasdaq and S&P gained in the single digits.

Consider this--the Dow Jones is at its' highest levels since June 2012, while the other two indeces have reached new highs not seen since December 2011 (the time when Hostess was still riding high with their famed Twinkees, Ho-Ho's, and Ding Dongs).

As it was forecasted earlier, the bearish momentum became serious in the markets: and that is what is expected today. The fundamental figures that were released yesterday even added more to the bearish momentum. The next price levels should then be paid attention to.

It all began overnight in foreign countries and spilled over to begin the first business day of 2013.

It was all good:  Dow Jones with its' biggest gain since December 10, 2011 finishing with an over 308 point gain.

The tech-heavy Nasdaq also did very well, up over 3 percent to gain almost 93 points.  The S&P increased by 26 and the small/mid-cap Russell 2000 finished with an all-time high.

What happened on Wednesday reveal that the bears are coming in with full force. Following the massive gaps that occurred that day, most currency instruments traded downwards. The downwards biases should continue, with high volatility and momentum. Moreover, serious fundamental figures are expected today. Some of them are Construction PMI (affecting the Cable), ADP Non-Farm Employment Change, Unemployment Claims, FOMC Meeting Minutes (affecting the Greenback).

The USDCHF and the EURUSD traded sideways at the beginning of the week, whereas the GBPUSD, the USDJPY and EURJPY rallied massively. Today, and interestingly, the markets have opened with massive gaps. What great opportunities for speculators!