During the session on Wednesday, we anticipate very little in the way of economic announcements that could move the market, so it is going to be a technical analysis based session. With that, we look at the charts in notice a couple of things that we think will be worth paying attention to.
The first market of course is the EUR/USD pair, an area that has been of great interest to the markets in general. With the 1.13 level offering a bit of support during the session on Tuesday, we think that the market will more than likely climb back towards the 1.14 level in an attempt to continue the consolidation that we have seen for some time. Quite frankly, we have no scenarios in which we are willing to buy calls in this market, as puts will more than likely be the best way to trade it.
The S&P 500 has been a little bit negative during the session on Tuesday, but quite frankly we are well within the parameters of consolidation. In fact, we believe that this market needs to fall little bit farther in order to show a bit of value in order for us to start buying calls. Because of this we believe that the market should continue to be one that offers plenty of buying opportunities and that will eventually break out to the upside.
Over in the gold market you can see that we had a slightly positive session originally, but at the end of the day the market reversal of those gains in ended up forming a bit of a shooting star. Because of this we feel that the market needs to meander around and just above the $1220 level in order to form some type of base. Sooner or later we are going to go long via calls, but right now we do not have the correct trading signal.
