Of the Friday session, we believe that the Michigan Consumer Sentiment Index will be the only announcement worth paying attention to, which of course has an effect on the US stock markets. With that, we look at the S&P 500 that initially fell during the Thursday session, but found enough support at the 2060 level to turn things back around and form a hammer. The hammer of course suggests that the market is going to continue going higher. If we break above the top of the candle, we are call buyers as the market should then head towards the 2100 level.
S&P 500
The gold markets tried to rally, but ran into enough resistance to turn things back around and form a little bit of a shooting star. That being said, there is a lot of noise between here and the $1180 level, so we are very hesitant to start buying puts. We are simply going to wait for some type of supportive candle in order to serve buying calls again.
The DAX looks as it’s trying to break out to the upside, and will officially do so once we get above the €11,000 handle. Any pullback at this point in time should be considered a call buying opportunity, as the DAX looks so healthy. We believe that we are going to have a longer-term move to the upside from here, but it may take a little bit of momentum building in order to facilitate that particular stance.