Thursday, September 8, 2011

Morning Market Update Sep. 8

Trade what you see. EUR/USD is hanging around 1.40 and is not breaking down below decisively just yet. So many traders want to short this pair into oblivion. Trichet is one tough cookie, to me he did not sound too dovish this morning. Since the policy is so uncertain, we need to interpret the chart and for now it says 1.40 - 1.45 range may still be with us. Let's not forget that supreme ruler of the easy monetary policy, Ben Bernanke, is speaking @ 1 pm edt. That is your next risk of the day. My bias is neutral at the moment, unless we break out on either side of 1.40 - 1.41 decisively.

SPX is using 1190 for support and 1200 for resistance. How many times will we oscillate around this 1190 - 1200 level? There are open gaps at 1204 and 1165. We are going to fill both, but I do not know which one first :) My bias remains bullish for short-term, pullbacks are gifts, imho.

Update @ 11:55 am edt

SPX 1204 gap filled

EUR/USD diving hard after London fix. Currently @ 1.3950 and looking to test the low made earlier in the session. Consecutive daily closes below 1.40 and 200dma may open the flood gates.

Correction: Bernanke speaks @ 1:30 pm edt

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