Looking at the Thursday session, we anticipate that the announcement of the Quarterly Inflation Report coming out of the United Kingdom will more than likely move the FTSE and the GBP/USD pair, just as the Retail Sales number out of the United States will move the stock markets in America, as well as possibly the US dollar.
Looking at the S&P 500, we are approaching the top of the consolidation area that the market has been grinding away at for some time. Because of this, we feel that the market could very easily pullback in order to try to build up enough momentum to break out to the upside. If we can get above the 2100 level, we feel that this market will continue on a longer-term buy-and-hold type of situation. Nonetheless, we see the “bottom” of this market being the 2000 region. With that being the case, we are only buying calls on supportive looking candles after slight pullbacks.
Looking at the gold market, we fell again during the session on Wednesday, testing the $1220 region. We could drop all the way down to $1200 before we find the support though, so we are going to sit on the sidelines at the moment in order to try to find supportive candles in order to start going long via calls yet again.
Looking at the EUR/USD pair, we are sitting right at the 1.13 level, which is massively supportive, and could send this market higher and looking for the 1.15 level. At that area, we feel that the market will continue selling off at that level, giving us a put buying opportunity if we get there.