It’s been a while since I last wrote, and markets in all fairness have lacked an element of predictability, however there are a few levels to watch out for major equity indices that aren’t too far away from current levels.

The S&P has the 1474 level to negotiate which I do expect to be breached given the current climate, interestingly Tom DeMark has called for a peak at around 1492, citing fresh buying once we break 1474 and anticipation of breaching 1500 shortly after, he however cites that there are signs of exhaustion and the latter level will not be breached. This level ties in nicely with the 5618 level of the Dow Transports (around 1% higher form current levels), a convincing break of this level on good volume will put a significant bullish bias on the markets however I feel we may just struggle.

Elsewhere, in FX the Euro has broken through some key technical resistance levels in the past couple of sessions, the 1.3480-1.35 region is a target for quite a few market participants at this moment in time. For the week ahead earnings season begins to hot up with a number a major financial players reporting this week, all of which should at least cause some of the aforementioned technical levels to be tested……Good luck, Bally.


Philip Ball | Sales and Trading