The EUR/USD pair continues to fall, as to the Saul sellers come in and push the value of the Euro down. With that being the case, the market looks as if it is one that will continue to offer put buying opportunities, as the Euro will continue to struggle with the fact that the European Central Bank should continue to loosen monetary policy going forward. With that being the case, we continue to buy puts on short-term rallies and of course a move below the 1.2350 level should send this market much lower, probably heading towards the 1.2050 region.
Gold markets fell a little bit during the session, and we believe that the precious metal continues to sell off, and therefore we like buying puts on very short-term rallies, as well as a break below the range for the session.
The S&P 500 fell a bit during the session, but we believe that there will be plenty of supportive traders below in order to continue pushing the market higher. We believe that the 2000 region is the “floor” and that we should essentially see this market grind its way towards the 2100 level, and probably much higher than that. Ultimately, we believe that all US indices will continue to see strength, and with that we feel that the US is still the market that you want to own.
The continuation of the longer-term trends, should be the biggest feature during the session. However, we have to look at the ADP employment numbers as a potential market mover. After all it is a precursor to what happens on Friday for the non-farm payroll numbers and of course that is by far the largest mover of markets out there. With that, we look at the notes with as a potential gauge of where employment is in the United States are now.
