The markets have pulled back from the exaggerated pessimism that prevailed yesterday helped by a weaker Dollar against the Euro. Equities are mixed despite the fact that Spanish yields rose to 6.1%. The news from Europe is uncertain as we await the main key Economic events at the end of the week. The IMF provides its global outlook today and we also have the German ZEW this morning, followed by the eagerly awaited US Housing No’s later today.
S&P 500
The S&P rallied nicely up to 1375 before lunch giving me a chance to sell at 1372. However when the Euro could not sell off I covered my position at 1363 and I am now flat. I will raise my buying level to 1360/1363 with a 1355 stop looking for a retest of 1378. The Williams Indicator has given a small buy signal on the S&P and I no longer want to be short at this time. If break 1378 it will confirm the buy signal.
EURO
The Euro had a nice rally of 1.30 yesterday morning and I got taken out of my small short. I want to buy on any retracement to 1.3100 with a 1.3050 stop, looking for a retest of the important 1.3180/1.3220 level.
FTSE
I bought the FTSE last night at 5610 and I am looking for a retest of 5670/5700. I have a break-even stop and I will add to my position if we trade back to 5620. Just like the S&P the Williams Indicator has given a small buy signal here.
USD/JPY
USD/JPY entered my buy level last night and I am long with a 8020 stop. We are at the the bottom of the Bollinger Band and we are very oversold short term. If I am taken out of my long I will look to reset at 7980 with a 7950 stop.
Bund
I am looking for the market to put in a long term top near 141 especially after last weeks poor auction result in Germany. I have moved my sell level down to 140.60/141.00 as I am looking to build a position and if I go short I will add to this position if and when it moves into profit.
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