Pre NFP/Morning report #share #nfp #trading #economics #news I thought earlier in the week that the markets had taken the US shut down remarkably well, and then came the sell off. It seems to me that the majority of market participants thought the threat of a ‘shut down’ was enough to address the issues, but clearly not. The S&P sold off yesterday dragging the rest of the indices with it. We saw 1673 as good solid support however and the ever hard dip buyers came back into the market with force taking the market back through the 1680.25/1682.75 resistance. We are currently trading on the futures on the 1680.25 level so the market will have to decide if this is to become support or resistance. With the Bureau of labour statistics (a government department) out of service it looks as there is no NFP tomorrow. The ADP, which is seen to be a precursor the NFP came in as ‘dismal’ and this will do nothing for confidence going into the weekend. I see a close today below 1680.25 driving the S&P lower. Once the double bottom at 1673 is tested and broken then 1666.50 and 1659.50 are key downs side support levels. FTSE The FTSE was out performing the rest of the indices earlier in the week but has also succumbed to the pressures in the US. 6393.5 was a key area for support I have previously highlighted and this was certainly where the value hunters returned after the aggressive sell of yesterday. Very much with the S&P the rebound seem shaky and if we come back to test 6393.5 with any force then the FTSE has very little support until 6236. In-between this there is the long term Fib which may come in to play at 6299.8, but if we start lower with force then I see coming back. DAX As aggressive as the sell off was mid-afternoon, it was countered by the buy back. I was personally just about the press the sell button as the move happened and hesitated, only to see the DAX fall 50 points in a straight line. These things happen. The rebound was then equally as impressive. Hard to say with the DAX where it wants to settle. With Merkel back at the reigns and the majority of ‘people in the know’ telling the Euro crisis is over, we should all buy the EURO, I’m sorry I just don’t, literally, buy it. Spain’s youth unemployment is at 60+%, Greece has more debt than it started with before the bail out, Italy have been held at ransom by the Bunga Bunga mob, does that sound like a good place to invest? For me the DAX returns to 8559.5 the 8476 in the next few weeks. The EU is fundamentally flawed and for me is kaput, if I was the next Dragon Investor – I’d be out.
Posted on: Thu, 03 Oct 2013 08:47:32 +0000
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