With the BBA Mortgage Approvals announcement out of the United Kingdom being the biggest announcement during the Monday session, we do not anticipate much in the way of market moving news. However, we can look to technical analysis to give us an idea of where the markets may go to.
Looking at the silver market, we have stalled at the $18.50 level, an area that is in fact resistance. With that being the case, we feel that the market will pull back from here but should offer nice call buying opportunities as the market is most certainly in an uptrend over the last several weeks. With that, we remain bullish of silver but recognize that we may need a little bit of profit taking to continue higher. On the other hand, if we do clear the $18.50 level, we would be buyers of calls immediately.
silver
The S&P 500 struggled at the 2060 level, which has been resistance in the past. However it does look like it’s going to be a fairly bullish market overall so therefore we are buyers of calls on pullbacks, and breaks above the aforementioned 2060 handle. We believe that ultimately the S&P 500 is going to 2100, and higher than that given enough time.
The EUR/USD pair broke down during the session on Friday, but bounced towards the end of European trading. This ended up forming a hammer like candle but isn’t supportive enough for us to get too excited. We simply think that a bit of profit taking is going on as it is Friday, and that buying puts on short-term rallies could continue to be the way going forward. After all, the next serious support level is at the 1.10 level, and we do think that this pair will ultimately challenge that level. We have no plans on buying calls at this point.