IIFT Daily Note with Peter Brown

Meltdown

Posted by:  |  Time: 7:31 am  |  Topic:
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Syria was the catalyst but this market wanted to correct for some time. Tapering, poor economic stats, bonds, all contributed to the mood to take profit off the table. Yesterday the mood was so negative we failed to bounce with any significance.We now sit on a major chart point, 1630 S&P. Frankly outside a small bounce we have little chance of reversing this mood and are heading lower. The uncertainty over Syria and add to that the debt ceiling argument , which is back in vogue, and we may have the perfect storm. This mood will not turn around anytime soon.

Trading today is a sell, if the DAX heads lower from the off, go with it. If we bounce a bit look to sell. Stocks lower, FX range bound, Gold higher.

Levels are tricky as we are down a long way. Euro  1.3400  1.3320  Gold should hit resistance at 1485  S&P 1636 Resistance 1630  1621  1609

The details of the US attach on Syria is important because it involves responses from Russia and Iran. This has the potential to be very unsettling or a storm in a tea cup. Either way the story will dominate the rest of this week. Wait for the initil mood in Europe sell if negative , sell on the rally if positive.

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