The S&P 500 initially fell during the session on Thursday but found enough support to turn things back around and form a nice-looking hammer. Because of this, we believe that the S&P 500 will continue to go higher, and with the CPI numbers coming out of the United States today, it is likely that could be the catalyst. We are buyers of calls on both breakouts above the 2110 level, as well as pullbacks and show signs of support on short-term charts. We have no interest in buying puts.
Silver markets tried to rally during the course of the day on Thursday, but found the 16.50 level be far too resistive. By doing so, we ended up falling and forming a shooting star, which of course it’s just above the $16 handle. We believe that the market may be short-term bearish, but quite frankly it’s difficult to hang onto any trade for any real length of time.
The EUR/USD pair initially fell during the day on Thursday but found enough support above the 1.06 level to turn things back around and head towards the 1.0750 handle. We found that area to be a bit resistive though so we ended up pulling back a little bit, but ultimately we believe that this market is bearish and we are looking for put buying opportunities on resistive candles.
The FTSE initially tried to break above the 7100 level, but turned back around and formed a shooting star. By the end of the day, it looks as if we are heading towards the 7000 level to try to find support. We believe the market essentially trying to build up enough momentum to finally break out above the 7100 level, so we are looking for call buying opportunities below.