Yesterday saw a reversal of the prior days gains on very little news flow however markets are starting off on a positive note this morning. There is bullish seasonal bias this week and we also have quarter end. A worry for the Equity Markets over the next couple of weeks is that the McClelan Oscillator is still negative at -35, so we have negative divergence. Today we have the Durable Goods Report at 1.30pm and the market is looking for a rebound following January’s decline.

S&P 500

The market traded into my sell zone yesterday at 1419 and then traded all the way down to my buy zone of 1402/1405 with a 1404 low. I am now long with a break-even stop and I will go flat at 1415. I will still use any rally over 1420 to go short with a 1427 stop.

Euro

The Euro hit my buy level of 1.3320 and I will raise my stop to 1.3330 looking for a test of the very important 1.34 level where I will go flat. If we break this 1.340 level we should have a rally to 1.3480/1.3520 where I will look to go short.

DAX

I am flat here looking to sell on any rally to 7170/7200 with a 7220 stop.

Bund

I have taken profits on my long from yesterday and I have raised my sell level to 13750/13780 with a 13810 stop, looking for a retest of 13660 again.

Natural Gas

Natural Gas is now at 2.16 and I have a resting order at 2.10 to go long. Please see yesterdays update.