Looking at the Wednesday session, the US ISM Nonmanufacturing PMI numbers come out during the session, and as a result we could get a bit of volatility in the US stock markets during the session. Because of this, we are watching the S&P 500 as it has gone a little bit higher during the session on Tuesday, and looks as if it is ready to go to the 2060 level given enough momentum. Any pullback at this point time should be a call buying opportunity as we continue the larger consolidation area. We have no interest whatsoever in buying puts.
The EUR/USD pair has broken higher during the course of the day on Tuesday, but as you can see this market is most certainly in a massive downtrend so we are waiting to see some type of resistant candle in order to start buying puts again. With that being the case, we are not necessarily doing anything today, we are most certainly pain attention to the 1.15 level which of course is a large, round, psychologically significant number and should bring in the sellers again.
Gold markets tried to rally during the course of the session on Tuesday, but as you can see struggled a bit during the session on Tuesday above the $1280 level, and as a result it looks as if the market is going to roll over little bit, testing the $1260 level. That being the case, the market below should bring in buyers so if we can find some type of supportive candle, we would be buyers of calls. We believe that there are plenty of opportunities to serve buying calls below, so we will simply look for a hammer or some other impulsive positive candle in order to start buying calls.
Gold