Wednesday, September 7, 2011

SPX and EUR/USD mid-day update

Market is running on all cylinders. We are at 1190 resistance now, tighten up the stops and be ready for the risk of the day - Beige Book. I suspect it will be ugly, with a capital U.
Possible retrace could be at 1165 - 70 level. Gap close, short-term moving avgs, and t/l are all laminated there. VIX is being stubborn here, even as we grind higher.

EUR/USD is being helped further this late morning by Mr. Evans' remarks. Just like in his earlier interview, he is calling for above 2% inflation target, says that we are at very high unemployment level (we know sir), and if he could cut the rates further he would. Well, he can't :) What now?? Obviously he is for QE3...
EUR/USD loves it. I see a possible hold between 1.40 - 41 range until tomorrow's big Trichet moment at 8:30, and nobody wants to do anything big ahead of that.

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