IIFT Daily Note with Peter Brown

US market still strong.

Posted by:  |  Time: 7:50 am  |  Topic:
Trading Is At Your Own Risk - Read Our Terms & Conditions

Despite that worries over the Eurozone, especially the italian political stalemate, the US market still has the QE and low interest rate dynamic which supports the equity market. Shorting the S&P has been a bad tactic all year, down moves are sharp but always rally back. Bernanke comitted to continued QE yesterday and the market soared. European markets got a lift on the back of it. S&P is close to the highs at 1530 and it remains to be seen if we can make new highs comming into the fiscal cliff talks in March. As I said yesterday we have entered a difficult trading market for the next four weeks. Europe is negative but the US is positive. This will make the markets tricky to trade with no clear direction.

Technical levels today are 1525/30 resistance 1500  support. Range is very wide due to the high volatility.

Euro  1.3120  1.3020 support levels 1.3170 and 1.3200 resitance .

USD JPY seems to have found support after profit taking might be ready to put in a new move higher.

Comments are closed.