IIFT Daily Note with Peter Brown

Risk Off again after Spanish downgrade.

Posted by:  |  Time: 7:39 am  |  Topic:  |  Comments: 1
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This market is definately ranging. Although the range has to be adjusted over time we are not going anywhere dramatic on these markets.

It looked like we were heading a lot higher yesterday but a good olde downgrade put pay to that, not the French one that has been rumoured but Spain.

S&P now capped at 1400 and bottom support is at 1382. Euro/Usd top is 1.3260 or even 1.3205  Bottom support is now 1.3150/60

We have to see the Spanish Ibex reaction to the news for further direction but clearly the upside is limited. How far can we go on the downside? That is the question.

One Comment

Graham

April 27, 2012

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Re ur comments earlier……I think the S&P will test the 1400 level today….be interesting to see if it is supported up there and possibly move higher….As i said last week have been watching the euro on the monthly chart and as it failed to retest below 1.30 and If it trades above the 1.3381 level and is supported there I feel it will continue to rally higher….A good indicator would be the 1.34 level…..If the market is supported there, it should rally higher….For some reason there are vested interests out there that the Euro should continue to be supported….Thats my opinion.