IIFT Daily Note with Peter Brown

Tight trading ranges

Posted by:  |  Time: 7:51 am  |  Topic:
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The one way bet in the US, S&P has stalled for the time being. Deficit talks and the fact we have come so far have led to a pause in the buying. Big question now is are we going sideways for a while or will we correct. As yet there is no sign of market nervousness, each fall back is quickly bought. There are some commentators calling for a 5% reversal, that would lead to a correction to 1470. I am not expecting that to happen. If we reverse there will have to be some fairly bad news to cause it as most investors see no reason to unwind their long equity positions. Only Italy or the debt talks can cause that bearishness and as yet the market is ignoring them.

In the meantime looks like another day of range trading. Today we will move to the JUNE contract on the S&P for commentary.

Levels are 1552  1543  Euro is in a tight range and working well off pivots 1.3073  1.2990

Nice pull back on USD/JPY would ideally like 94.50 to enter but will start to buy at 95.00 target 98.50

IBEX is based on the mood, looks too quiet for a trade there today.

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