The ADP numbers come out during the session today, so that could of course move the markets in general. We believe this will be most felt in the US indices, and as a result we are very interested in the S&P 500. The S&P 500 continues to find support near the 2100 level, as we pulled back slightly during the session on Tuesday. With this, we are buyers of calls as we believe that ultimately this market will break out above and beyond the 2120 handle.
The WTI crude oil market broke above the $60 level during the session on Tuesday, signaling that we are going to go much higher given enough time. With this, we are bullish and we are call buyers in this market. We have absolutely no interest in buying puts at this point, as we believe the market will fight its way up to the $65 level next.
Looking over at the EUR/USD pair, we continue to find resilience just below the 1.12 level. This is an area that is indeed significant for the markets, and as a result we believe that the market will continue to find buyers every time it drops. We ultimately believe that this market is going to try to get to the 1.15 handle, which breaking above there would be a trend change in our opinion.