Technical analysis on EUR/USD; EUR/CAD; S&P 500; VIX-Index and the 10Y Italian Govt. Bond Yield

In a thin after the holiday market I have decided to look at some different charts.

EUR/USD - Still in a holding pattern, but I also still look for a breakdown below 130.17 to confirm the next decline towards the 125 - 126 area.

Short term resistance is at 131.

EUR/CAD - Might be breaking down from a six months corrective pattern. If we break clearly below 133 we should see a move to below 124.75.

Short term resistance is in the 133.75 - 134.25 area.

S&P 500 has broken above resistance at 1,256 calling for a move towards 1,292 and likely also near 1,300, but the stock market participants is clearly getting to complacent and we should be aware of a sudden collapse in prices.

As I wrote on December 25. a inverted S/H/S pattern can be seen and it does have a target near 1,360, which we might have to fulfill. After the break above 1,256 I would be cautious bullish, but I would not run after anything is this lofty area.

VIX - Index - As I just said. The markets is becoming too complacent, but we are clearly looking at some kine of ending diagonal, which probably has a little more downside, but when its done we should see a quick move to the upside.

The 10Y Italian Government Bond Yield - We are closing in on the important resistance at 7.30 and a break above here would call for a continuation towards the 8.25 - 8.35 area.

This situation is not sustainable in the long run. If a solution is not found pretty quickly the hole Euro system could collapse. I'm sure that EU and the Italian politician will do what ever to kick the can further down the road, but in the long run status quo can't be maintained with yield this high.