IIFT Daily Note with Peter Brown

Market break below significant levels.

Posted by:  |  Time: 10:06 am  |  Topic:
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The 1650/45  major support level failed to hold yesterday. Despite an earlier rally to 1656 the market finished very badly. We look set for further losses as the market worries about tapering and hedge fund managers cash in profits earned year to date. The bounces in this latest sell off have been very small and despite the market being overbought expect only small rallies today.

The more this move takes hold the more likely we will have a major down day ( 300 points + ) So be careful and sell on any rally.

Elsewhere, outside of the IBEX which had a bad day yesterday on bad loan projections, the market is realitively calm. FX is very stable on the Euro and the Jpy.

Aud down at .9050 a lot of traders trying to find the bottom of the big move from 1.05        .90oo should be support but the recovery is not in sight yet.

So sell on rallies for equities  levels are  1650 hard to see tech. support so I am going for 1630

Euro stuck  1.3400   1.3300

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