IIFT Daily Note with Peter Brown

Major chart points ahead

Posted by:  |  Time: 7:52 am  |  Topic:
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We have reached two major chart points in the recent stock and dollar rally. 1650 on the S&P and 1.2750 on the Euro. The market needs a slight correction on the recent runs and these points may prove a bridge too far. 1.2750 is the low we reached in the Cyprus crisis and the Euro has the ability to stall at major Technical levels. The S&P rally has been seriously impressive, 500+ points.

No bad news out there to cause a correction but I would not be confident the market can take out these levels after moving so far so quickly. Corrections may not be large 100+ points or so but the main thing is to expect them.

Levels if we correct are S&P support at 1638  1630  Euro resistance at 1.2820  1.2900

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