Looking at the Thursday session, the Initial Jobless Claims coming out of America will be one of the larger market moving event. This should have an effect on the S&P 500, as well as American indices in general. The Australians have employment numbers coming out which of course can move the Australian dollar itself. Beyond that, we should have a fairly quiet day as far as economic news is concerned.
The S&P 500 is pressing up against a downtrend line, and we feel now that if the market breaks above and to the 2110 level, call buying opportunities will exist as we should have the freedom to go much higher. We think that pullbacks should offer call buying opportunities as well, simply because there should be more than enough support below.
S&P 500
The AUD/USD pair continues to meander around the 0.76 handle. We believe that the jobless numbers out of Australia could cause a bit of a knee-jerk reaction, and quite frankly we would love to start buying puts at higher levels on signs of resistance. On the other hand, if we can finally break down below the 0.75 handle, we would be buyers of puts down there as well.
The FTSE broke above the 7100 level initially during the session on Wednesday, but continues to meander around the level. Ultimately, if we can break above the 7100 level for a significant amount of time, we feel that the market should continue to go much, much higher. We are buyers of calls on that move, and have no interest in buying puts.