Good Morning Traders.
Global equity markets seem to be hanging on the edge of a cliff as we speak. In the last few trading days the aggressive nature of the prevailing up trend has lost its explosive power but it continues to remain range bound at these high levels. We are seeking new highs being made in the US equity markets but there has been a lack of persistent follow through which will give both bulls and bears something to speak about.
The markets as a whole seem to be confined to these tight ranges and the lack of important economic headlines should keep us in these ranges unless we hear something unexpected.

The interesting story over the last few days that caught the attention of the market was the Wall St journal article which highlighted the FED's map to taper their monetary easing policy (QE) toward the end of 2013. This headlined caused a minor pull back in the equity markets only to be quickly bought up again. As we mentioned in a blog last week, the European session continues to lack volume and they have been selling the market and we have seen the american market participants come into the market and give strong support.

Levels for me today are as follows: EURUSD 1.3040 / 1.2940, S&P 1620 / 1636, DowJ 15070 / 15,110

In conclusion we have a bit of economic data from the Eurozone this morning in the form of German ZEW and Eurozone Economic Sentiment Indicator which should give direction to the market. We expect to see a German reading below expectation due to the recent leg lower in the DAX but want for the headline don't speculate. I would be sticking to the philosophy of buying any dips unless we see something drastic in the market.

Happy Trading