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Emini S&P September futures shorts at 5495/5505 worked perfectly with a high for the day exactly here before prices collapsed 50 points to 5448. The low & high for the last session were 5448 - 5506. (To compare the spread to the contract you trade).
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Emini S&P made a high for the day almost exactly at resistance at 5495/5505 & shorts worked perfectly on the 50 sell off. We have bounced back to the resistance & again, shorts need stops above 5515.
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A break higher however is a short term buy signal targeting 5530 & possibly as far as strong resistance at 5555/65 - shorts need stops above 5575.
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A break below 5390 (Friday's low was 5494) targets 5370 & support at 5350/45.
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Bear in mind that even if we are building a bear trend (& I think we are) there will be very strong bounces at support levels (& again, we saw that yesterday). Bulls never give up & buying the dip has worked for too long for them to stop now!!
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Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
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Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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