The SPX 500 sits about flat (as of 9:55am EST) after yesterday’s close. With such large gains in less than a week the market may be quiet as we await the release of tomorrow’s NFP report and US Unemployment Rate. The 1,250 area (200 Day Moving Average) was a major technical point back in June, which was finally broken in August after Standard and Poor’s rating agency downgraded the US.
We are now approaching the 61.8 Fib at 1,255. If this area is clearly broken we may see continued gains in December and the USD lose ground, especially against commodity based pairs such as AUD/USD and NZD/USD. From there the next resistance could be the 200 day MVA around 1,263 area.
Be sure to use proper leverage and wait for confirmation before entering into a position. Large moves like yesterday can result in a severe drawdown. Comments and opinions are all welcome.
