There is a pervading sense of unease in the markets which saw another day of risk aversion taking over from good economic data. Equities are lower with Spanish yields over 6.3% and the USD is stronger across the board. With JP Morgan not in the market, a major source of liquidity has been removed. The failure to form a government in Greece means we will have another election in four weeks thus leaving markets in limbo. Greek people say they want the Euro but not austerity and the Germans are saying they can’t have one without the other. All the economic numbers out yesterday were better than expected but after an initial rally the markets all sold off.
Today we have UK Unemployment and US Housing numbers. Later we have the FOMC minutes.
NOTE: All comments below refer to the June Futures Contract in each instrument
S&P 500
After the spike in Spanish yields the S&P traded down to my buy level and I went long at 1335 and managed to take profit at 1342. Yesterdays sell off in all equity markets has done a lot of technical damage for the bulls. We are now testing the important 1320 level and I will buy from 1319/1322 with a 1315 stop. The market is very oversold but can still go lower.
USD/JPY
I am amazed that the Yen is not stronger given the sell-off in the markets and I want to buy from 8010/8040 with a 7980 stop.
IBEX
Once again, after the Spanish yield driven spike up, the IBEX got hit hard and I was quickly stopped out of my small long at 6650. 6680/6730 will now become strong resistance. The market is very oversold and outside its Bollinger Band I will look to buy a dip with a small position at 6400 with a 6340 stop.
FTSE
The FTSE just missed my target profit level of 5495 and I was stopped out of my 5450 long for break-even. This market is also outside its Bollinger Band and is getting hit hard this morning. I will look to buy from 5300/5330 with a 5280 stop.
EURO/USD
The Euro, having held up reasonably well over the last week got hit hard and we are now testing the very important 1.2640/1.2670 level. I am flat having been stopped out at 1.2830 yesterday and I will look to reset my long position in this same area with a 1.2610 stop
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