11 02 2010

Overnight the S&P has stayed in a tight range around the key 1067 area, where we have been stuck for the last two days.  The market is in a holding pattern waiting for word of resolution in the situation with Greece.

Today I expect a continuation of the volatility we’ve been seeing, and I suspect that price will try to find it’s way upward into the lower volume area around 1075.  The 1060 area could provide strong support.  The 1085-1087 area could provide resistance, although the gap at 1094 has yet to be filled and could act like a magnet if the market starts to head in that direction.

Gold appears to be working it’s way back to the downward trendline on the daily chart.  Stalking a short in the $1,100-$1,005 area.

The Euro will likely be the currency in play today as the world waits to see what is going to happen with Greece.  With German GDP tomorrow I expect a range-bound day around the 1.3750 area, but we could see a strong breakout if the news establishes something concrete with the Greek situation.  I expect to see some kind of big move before the US long-weekend.




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