With the US Annualized GDP numbers coming out during the day on Wednesday, we believe that most of the action will be found in the US stock markets as well as the US dollar. This should greatly influenced the forex markets as well as the usual indices, such as the S&P 500, NASDAQ, Dow Jones Industrial Average, and the Russell 2000.
Looking at the S&P 500 we initially fell during the session on Tuesday, but found more than enough support below the 2100 level to turn the market back around and form a nice-looking hammer. This hammer suggests that we are in fact going to see continued bullishness, so we are looking to short-term charts in order to find call buying opportunities as we believe the S&P 500 eventually climbs much higher.
Silver markets rose during the day on Tuesday as well, clearing the $16.50 level. With that, we believe that the market will ultimately head to the $17.00 level, but we recognize that as a significant barrier. Short-term traders will probably be attracted to call buying opportunities on short-term pullbacks. Longer-term traders will probably wait to see what happens at the $17.00 level.
The EUR/USD pair powered much higher during the session on Tuesday, but found the 1.10 level just above. That is an area that should bring in quite a bit of resistance, so we are very hesitant to buy calls at this point. Quite frankly, you are either already bullish of this market or you are waiting for a resistive candle in order to start buying puts.