The S&P 500 Wednesday bolted to a new record after the Federal Reserve kept its policy of ultra-low interest rates and did not accelerate the time-frame for raising them. The S&P 500, a broad measure of the US stock markets, jumped 14.99 points (0.77…
The EURUSD pair initially fell during the course of the session on Monday, but found support near the 1.35 level yet again. This area continues to bring in buyers, and as a result we feel that the market is probably going to continue to consolidate overall.
The USDJPY pair initially fell during the session on Monday, but as you can see ended up bouncing enough to form a hammer by the end of the day. This hammer of course suggests that the markets going to go higher, and as a result we believe that the move higher should continue to the 103 level at the very least, as it is the next major resistance area.
The USDJPY pair tried to rally during the session on Thursday, but as you can see lost most of the gains by the time we closed at the end of the day. The 104 level proved to be rather resistive, so the fact that we pullback and formed a shooting star suggests that we are in fact going to see some type of pullback at this point in time.
Gold (GLD, quote) continues to remain weak with yesterday’s close of 1284.50. In early trading the spot price of gold is basically flat.
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The EUR/USD pair went back and forth during the session on Monday, as we continue to struggle with the downtrend line that forms the channel going lower from the start of the financial crisis.
The USD/JPY (yen) pair rose significantly during the session on Tuesday, as the bottom of the consolidation yet again offered support.We are longer-term bulls when it comes to this pair, and believe that the next significant barrier to get past as the 103 level.
‘Wind down’ is not withdrawal but watch negative news flow in the US; treading water is not growth so keep the champagne on ice for Europe; price is not value so beware investor sentiment; falling unemployment is not rising employment so watch the participation rate; and a hiccup is not a correction so keep an eye on an exit…
With the first two trading days in the bag markets look to be setting up for a lower open as traders focus on Friday’s delayed non-Farm Payroll results for October.
