The S&P futures surged higher yesterday, posting a remarkable defense of our previously highlighted key long-term uptrend line and the psychological 1050 level. Buying in the S&P futures returned with avengeance after U.S. manufacturing PMI data came in at 56.3, topping analyst expectations of 53.2. Considering investors have only been receiving negative U.S. data recently, the encouraging PMI reading gave bulls ammo to take advantage of oversold conditions. Wednesday’s impressive rally...

Using Pivot Points to make Better Trades

Pivot Points have been used by floor traders at the major equities and futures exchanges for a long time. Traders found that the price tended to hover near the pivot level and trade in between the pivot and support and resistance levels generated by a simple calculation based on the previous day’s high low and close. One advantage of using Pivots is they are a predictive indicator as opposed to lagging.

Predictive Vs Lagging...

Gold Tops $1,200/oz


Gold has topped its highly psychological $1200/oz level again and the precious metal has clearly re-entered the realms of its medium-term uptrend. Investors are fleeing to the precious metal again as investors lose confidence in the Dollar amid discouraging economic data. Today’s non-farm payrolls data disappointed just like yesterday’s weekly unemployment claims figure. Hence, the U.S. employment market is not improving as quickly as required in order...

The S&P futures are testing their key medium-term downtrend line originating at April highs and connecting through June highs.
If the S&P futures are able to surpass this downtrend line and top 1100 with conviction the futures could signal that they are entering a new uptrend. However, 1100 could prove to be a difficult barrier to leave behind.

Meanwhile, it seems upcoming earnings reports could prove to be the key test for the S&P futures along with tomorrow’s...

Gold is edging higher today as the EUR/USD pops towards 1.24.
Investors are regaining confidence in the risk trade as EU leaders meet for a one day summit to discuss future plans for the union’s financial industry in an effort to lift investor confidence. Additionally, Spain announced it will release the results from its bank stress tests shortly. Both developments are allowing investors to feel more comfortable owning the Euro, boosting the risk trade across the board.

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