IIFT Daily Note with Peter Brown

Will this rally reverse?

Posted by:  |  Time: 7:26 am  |  Topic:
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We have had a serious rally in stocks over the last few sessions, 25 handles on the S&P. Mainly due to Mid-east tensions easing. The rally looks overdone to me considering that tapering and the debt ceiling talks still loom. Today will an interesting start. If the Dax starts lower we may get a good correction followed through into the US session. It is unlikely we will rally hard like yesterday so all the potential is on the downside.

Nothing much in the way of stats except UK unemployment figures. For those trading the FTSE rates in the UK are linked to these figures and a good figure will raise speculation of rate rises.

Elsewhere it is go with the mood. If the market opens selling it could be a big down day.

Levels are S&P 1684  1678 1670  Euro 1.3300   1.3200 Gold has a nice floor at 1355

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