IIFT Daily Note with Peter Brown

FOMC

Posted by:  |  Time: 7:48 am  |  Topic:
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Well the Fed did not let us down last night. What a move. First the early relaese of the bank stress tests showed the US banks are in much better condition than their counterparts in Europe. We hit 1390 on the S&P on the back of that one. Than the expected news that the economy is doing quite well. No QE so Gold got hammered. Dollar soaring.

An unusual event to see the dollar rising in conjunction with the stock market.

So where today. Well first the S&P is now within sight of 1400 so I think we will attempt that level. Maybe a pull back first, but definately a buy on dips. Gold I still think is a sell. We are well away fronm the 1725 level so new resistance level is 1685 support at 1660. My tarket is 1550.

Euro is harder to call 1.3120 should be the top for the short term, a break of 1.30 is significant, got to favour the down side.

We have a relatively quiet open, small reversal first than a continue of the trend.

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