Intraday Market Thoughts

Archived IMT (2010.10.25)

by Ashraf Laidi
Oct 25, 2010 15:32

S&P500 2 PTS AWAY away from regaining its 200-week MA (1195), a break above which (the average not 1195) would be the first since June 2008. We have already seen DJIA closing above its own 200-week MA for two consecutive weeks. The last time this happened, the S&P500successfully followed higher. In order for such a breakout not to be merely a false move, S&P500 is required to close the week above1200. The unexpectedly strong 10% rise in US Sep existing home sales should help S&P500 print >1195 but a weekly close above 1200 is key. Despite stocks bullishness, EURUSD remains hesitant, but rather than go against EURUSD, I prefer GBPUSD shorts, further highlighted by the quick pullback after from $1.5770s, now leading to $1.5660 ahead of Tuesday's highly anticipated UK Q3 data (see prev IMT & tweets) . OIL REMAINS WELL ABOVE the much touted support of 78, with is the overlap of BOTH the 200 & 100-WEEK MAs. 83.50 trendline resistance from Oct 7 high is required to fuel upside.


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