Looking at the Wednesday session, the only thing that we can see as potentially move the markets would be the Industrial Production numbers coming out of the United Kingdom. With this, we believe that the FTSE will be a mover, especially considering that it broke down so significantly during the session on Tuesday. As we tested the 6700 level, it should be noted that there is a significant amount of support just below, so it’s very likely that we continue going a little bit lower, but should find support and the fairly near term. Once we see that support, we are more than willing to start buying calls.
The EUR/USD pair continues to break down, and it now appears that we are heading to the 1.05 level. We are willing to buy puts every time this market rallies and show signs of resistance, as the Euro has far too much in the way of negativity surrounding it.
The S&P 500 fell as well, and as a result we think that it will look for support below. There is a lot of noise between here and the 2000 level, so we are waiting to see whether or not we get a supportive candle in order to start buying calls based upon the daily chart as we need to be sure before we start risking our money. Ultimately, we think that the S&P 500 goes to the 2200 level given enough time.