IIFT Daily Note with Peter Brown

Bernanke rallies the market

Posted by:  |  Time: 7:32 am  |  Topic:
Trading Is At Your Own Risk - Read Our Terms & Conditions

Amazing. In fact Bernanke did not say that much new at all. The Fed will keep interest rates low until the unemployment rate reaches 6.5% and even then it may not be a signal to tighten. QE and loads of it to come. Equity markets loved it and the dollar hated it. Moves were massive. There is now a pattern that when Bernanke or Draghi speak the market goes ballistic.

Were to now?

Well we have to look at this year’s high as a summer target  1686. Probably a bit too high after yesterday but the old saying buy on dips has re-emerged. This will now be the pattern until we get some bad news from outside the US. Clearly bad news in the US will just mean more QE.

Hard to pick levels this morning but here goes.

S&P 1686  1672  support at 1650    Euro  1.3200  1.3080  1.3000

Massive moves so be careful.

Comments are closed.