IIFT Daily Note with Peter Brown

New lows for the S&P.

Posted by:  |  Time: 7:59 am  |  Topic:
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With the fiscal cliff ahead it is hard to see the S&P making many gains. We keep making new lows and yesterday we reached the 1345 support area. Resistance is now at 1358. This pattern is likely to last up until December and the FC deadline. We will have bounces and given the volatility recently some maybe in the 200 point range. These will be sell opportunities. Friday traditionally is a day of reversal so be careful selling down here. Buy at 1345/48 for a small bounce. Sell in the 1358/65 area.

Euro hit major resistance at 1.2800 and sold off 50 points. This 1.2800/20 region is major. Basically the 200SMA on the daily chart. With Mid-East tensions rising it should give dollar support, so I expect this level to hold and be a good sell.

Watch for the possibility of a bounce on stocks today.

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