Above Average Trading Ranges Result in Buffalo Bounces
Good Morning,
First, the fundamentals. The European "bail/fail" circus is back and it seemed to happen just in time. We were close to the SPX support level of 1308 yesteray and now we are close to the SPX resistance level at 1360ish. We did get some economic news today in the US in the form of CHPM. It came in flat. Regarding the sub-components, employment was up and new orders were down just a bit. Consumer sentiment (second look) was down, but I look at that as a lagging indicator snce it is dependent on stock prices. We know data has been working its way downwards over the past few months. Will we see it stabilize? Will that be a pause in the recent downturn or will it be a new leg up that would be consistent with the longer term trend of positive data over the past year. Time will tell.
When will time tell? Next week, we have a slew of data including non-farm employment. Be careful as it is a holiday week and volumes could be light which could allow for large swings. Going back to the "time part", keep an eye on the economic data per usual.
Technically, above average trading ranges all around. And when that happens, BUFFALO BOUNCES tend to happen. GBP/USD followed by the AUD/USD.
Past performance is not indicative of future results
Past performance is not indicative of future results
Happy Trading and Be Environmentally Cool
Coach Brian
Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.
