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Market Wire Update:
S&P Sets Up NFP Rally
The S&P is chugging along in overdrive ahead of the Non-Farm Payroll numbers on Friday, and in doing so has triggered bids on the Nikkei futures market that now looks as though it will add support to the Wall Street based moves. In the global traded arena the moves higher in futures trade can be as important as the actual cash market.
The Nikkei was as low as 9650 in European futures trade, and has now reversed the selling, and found bids all the way up to 9887. The 9950 top from Thursday trade will be a road-block, but if the market can hold that area the German Dax market will have a great chance of taking out 5520.
That then sets up S&P traders for a play at 1065 and 1070 in trade on Friday, so long that is, that the Non-farm Circus rolls into town with banners and bunting, rather than dragons and dumplings.
The red flag on this move, sorry to be a bore, is the fact that participation could be stronger, but this whole 50% rally has been completed on strange volume reads, and also of note is that the commodity market has not rallied into the S&P move. By default, the Usd has not moved too far, in one of the first signs that we have had that global growth may be starting to be gaining enough momentum, possibly, to be able to wean the dollar off the S&P drip-feed, and onto the interest rate differential diet.
It will be a fascinating overnight session, and for the new generation of global market trader (GMT), TheLFB will be posting updates here on how it all unfolds overnight. This is not Grandpas’ market, and the GMT’s do not have time for open and closed market plays.
TheLFB Trade Plan of the Day is one of the six that are available to members on the major pairs each day, plus four Jpy based cross pairs, as well as S&P futures, oil, gold, and the dollar index.