Defend That Pivot

Good morning. Futures are showing slight gains following the path of both Asian and European markets. Recent data and high expectations for next week’s LTRO operation has seemingly helped offset rising concerns over oil prices and Europe. Here are the headlines:

  • Banks to seek help from ECB (BL)
  • Talk of bigger rescue fund (REU)
  • G20 to mull IMF crisis role (BL)
  • Draghi takes tough line on austerity (WSJ)
  • Euro hovers at 2 month highs (REU)
  • Dollar index extends weakness (MW)
  • Moody’s warns on Japan (REU)
  • Oil heads for longest win streak since 2010 (BL)
  • Volatility ETN triggers risk concerns (REU)
  • Republican bill would strip Fed’s mandate (REU)
  • Private-equity fund in valuation inquiry (WSJ)
  • Investors eagerly await Berkshire’s letter (YF)
  • Apple ponders dividend (REU)
  • Sears set to unload stores (WSJ)
  • Kenneth Cole goes private (MW)

An early effort yesterday to take the market down and move us back into the prior range failed after we reversed from the first support pivot. This was the same exact pattern we saw both on Tuesday and Wednesday this week as buy support continues to come in upon any minor pullback. Because of this we’ll obviously continue to watch closely how the market responds to these support pivots for any change than what we’ve seen so far this week.

The end result is that we closed above the prior trading range, still in the uptrend channel, and above all of the key trailing moving averages and just below Tuesday’s highs:

S&P 500: Daily View

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About abwehra group

The Art&Science of Trading Gold
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