The markets got hit badly yesterday as full blown pessimism returned. With the prospect of little additional monetary policy accommodation globally and despite the signs of modest global growth the market has refocussed on the worst case senario. Markets are now turning their attention to Spain which had a very bad debt auction yesterday. The ECB left rates unchanged and continues to see upside inflation risks but downside growth risks ahead. Today we have the Weekly Jobless Nos in the US and these will be watched closely ahead of the Non Farm Payrolls tomorrow when most markets are closed.
S&P 500
After a nice run in the S&P over the last week I was stopped of my small long at 1398 and I reset on a break of 1390. I went flat this morning ahead of the UK Manufacturing Nos which were weak. I do not want to have a big position ahead of the Nos tomorrow but I will buy small from 1380/1385 with a 1375 stop as the Globex Market will close 45 minutes after the Non Farm Payrolls are released at 2.15 pm.
Euro
I have moved my sell area down to 1.3190/1.3230 with a 1.3250 closing stop as I look for a move back to 1.3050 initially.
Bund
The Bund just missed my buy level and I now want to buy from 138.10/138.30 with a 137.80 stop.
FTSE
The FTSE had its biggest move of the year yesterday and we are now near the bottom of the Bollinger Band. I want to buy in front of 5600 with a 5570 stop. If I get stopped out I want to buy again at 5530 which is major support.
DAX
I was quickly stopped out of my Dax position yesterday and I am now flat. The Dax is also at the bottom of its Bollinger Band and 6750 is major support. I want to buy from 6720/6750 with a 6690 stop.
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