The movements which we are seeing in the S&P 500 is nothing but a big range. The market indecision is due to investors guessing when the FED is going to hike interest rates. A possible rate hike in October is not high with markets potentially heading into a possible shutdown come 1st October. Furthermore a stunning decision by House Speaker John Boehner to quit his job might have just complicated the FED’s rate hike decision further. This point to more uncertainty in the market. Life however need not be too complicated, here are the trading levels for the S&P 1830- 1880(D), 1880-2000(C), 2000-2050(B) and 2050-2130(A). When price breaks a new levels, that is my new trading levels. Otherwise I would be trading in between the support and resistance.
The USDJPY is possibly in an uptrend. I would be monitoring closely the gray highlighted area of 120.25 – 120.00 to see if price rejects those area. If it does, the first part of the uptrend is confirmed and final confirmation is a price close above 121.37. 4 days ago Mr Abe fired off what he called “three new arrows” on behalf of Abenomics, his programme was to revive Japan’s economy through a package of monetary easing, fiscal stimulus and structural reform. The first is a new pledge to boost nominal GDP by 22% to ¥600 trillion ($5 trillion) from ¥491 trillion last year. So let’s see if the Yen reacts to it.
Gold has recovered from its bottom of 1077 and its trading at resistance of 1150. A close above 1170 should see price trading in Box A of 1220-1150. Otherwise it’s back to Box B of 1150-1105. It is what I call sitting in the fence now readying itself to move. Watch this closely.