Looking at the Thursday session, without a doubt the biggest announcement that we anticipate is the Initial Jobless Claims coming out of the United States. Although we just got a nonfarm payroll number, jobs of course is one of the biggest economic indicators for the world’s largest economy.
Looking at the charts, the S&P 500 started to fall almost immediately on Wednesday, but found enough support just below the 2000 level to turn things back around and bring in buyers. We believe that buying calls on short-term dips will continue to be the way to play the S&P 500, although in the meantime we anticipate seen this market grind back and forth between the 2000 and the 2060 levels.
The EUR/USD pair is essentially dead money at the moment, as we continue to simply bounce around just below the 1.18 handle. However, be aware the fact that this is a massive support zone, so it will be interesting see if we can get some type of clarity soon. A bounce is very possible from here, and quite frankly mediated even if we decide to go below the support area. However, at this point in time we are on the sidelines.
Silver markets were especially as seen during the day, as they drop down to the $16.50 level in early trading. However, we had enough buying pressure underneath to push the market backup and form a nice-looking hammer. If we can break above the candle from the Tuesday session, we would more than likely head to the $17.50 level, and perhaps even test the $18.00 level. Having said that though, we would keep any trades in the silver markets to the shorter-term variety, perhaps buying calls on short-term dips and aiming for small increments a profit at a time. We have no interest in buying puts.