Good Morning Traders, Yesterday saw a Short Squeeze in The U.S Equity Markets. A short squeeze occurs when traders start to buy back their short positions, this is also called short covering. This combined with market participants buying stocks from the good ISM Non-Manufacturing news caused the price to shoot up dramatically and we got back to the 1515 level on the S&P 500 where we had topped out on Friday evening. This 1515 level seems to be a string resistance point for the market and we may need an additional catalyst to drive through here and target 1530 which would be the next target point. After 1530, the market will be only 2% from the 2007 all time highs of 1556.5. As I type the cash market is at 1512 in Pre-market trading.
From a currency perspective the EUR/USD pair had an up and down day yesterday, selling off in the overnight Asian to a low of 1.346 before finding a bid. When the European Markets opened the Euro went for a 90 pip run to 1.3550 boosted by some positive European data. When the Americans entered the market the EUR/USD dropped to nearly 1.35 flat and then launched to session highs of 1.3598 spurred by rumours that The ECB had decided that the Euro was still not strong enough to warrant a rate cut or any fiscal action to limit the rapid appreciation of the single currency.
Today is very quiet on the Data calendar with all eyes watching and waiting for the ECB's interest rate decision and press conference. Level's to look out for on the EUR/USD are 1.350-15 will have a lot of buying interest, which has limited the downside this morning, on the topside 1.358-1.36 will have strong offers. Good luck in the Markets!
Lowkey
No comments:
Post a Comment