IIFT Daily Note with Peter Brown

So much going on. All negative.

Posted by:  |  Time: 8:12 am  |  Topic:
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Take your pick, China banking, Emerging markets, deflation in Europe and Japan or tapering in the US. All negative influences on the market. The bad news has seeped into the price and yesterday the dam burst. Gone are the upward only stock markets of last year and the confidence of a strong US recovery. We are now in severe bear mood and any bad news now is causing major corrections. Markets are in Hurricane mode, volatility is 150+ moves on the S&P.

Today is extremely tricky. It is a sell on rallies but from where? Technical Analysis is difficult as we have broken through most supports. The session in Europe should be relatively stable but watch for Wall St , then the fireworks will begin.

Look for sell levels, that is the best chance. Limit losses to 75 points and you will be fine.

Euro fairly stable 1.3550  1.3480  S&P (MAR) 1760 and 1726 is best support (200 MA on the daily chart) Wall St 15600  no support until 14725

Crazy wide levels I know. Maybe a market to watch than trade. However keep the loss under control, if you get lucky you could get a big winner.

Unlikely to go quiet when we have Draghi on Thursday and NFP on Friday.

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