IIFT Daily Note with Peter Brown

FOMC hints at tapering.

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FOMC stirred the market yesterday, hinting that tapering is still on the agenda. Cannot see how they will begin tapering with the debt ceiling talks looming. More of a profit take than any serious worries I feel. The market had extended to 1772 on the S&P and frankly the move up was too swift. A correction was due and this was the prompt.

Dollar also got a boost and the Euro which has failed to breach 1.2825 sold off to 1.3700 area. I think we may correct a little bit further but not dramatically. We ahve certainly put in a mid term top on equities and we may have seen the high for the year.

Today is tricky as we need to find the support levels. So here goes.

S&P  (DEC) 1760  support at 1752  1745  Wall St (DFB) 15630  15530  Euro  1.3735  1.3660

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