IIFT Daily Note with Peter Brown

Doubts over QE3 end the rally

Posted by:  |  Time: 8:19 am  |  Topic:
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It looked almost certain that the market was going to break out to the topside. S&P hit 1452 Gold 1790 and the Euro 1.2940.

The market was really strong untill Bernanke spoke and the market amazingly reversed. This hardly happens , normally the Fed chairman can rally the market. Scepticism surrounding the effectiveness of QE3 is abounding.

The market reversed all gains. Now we are left directionless with the ranges intact. I still favour the upside in the S&P this month but we have to find some continued support. The Spanish situation continues to run and run. They need to ask for the bailout but that seems unlikely untill late October.

In the meantime we did learn yesterday where the market has resistance.  Support is at S&P 1428  1755 on Gold and 1.2825 on the Euro

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