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Futures Trade Desk- Calm Before a Very Big Storm

Daily Client Note

Global Futures Review

Calm Before a Very Big Storm

Latest Market Update: 
- Target areas have been hit on SP500, with 1235 the next area of note. There may be a move higher ahead of a main break of near-term support.

Near-term Outlook: 
Commodity Update-
Gold: Sup 1635 Res 1705 Neutral 1715. Silver: Sup 30.50 Res 32.15 Neutral 32.00. Oil: Sup 96.60 Res 101.00 Neutral 98.80. 

Equity/USD Update-
S&P500: Sup 1225 Res 1275 Neutral 1248. Dax: Sup 5685 Res 6090 Neutral 5925. DXY: Sup 78.50 Res 79.80. Neutral 78.75.

Forex Update-
EUR: Sup 1.3150 Res 1.3445 Neutral 1.3360. GBP: Sup 1.5530 Res 1.5750 Neutral 1.5660. JPY: Sup 77.30 Res 78.20 Neutral 77.60.

Recent Market Updates:
- Major Currencies are being sold against the USD, with the dollar index (DXY) looking to test 79.80 resistance. Bank early and often on DXY. 

- Equity indices are weak, but still holding mid-term support. Any breaks lower will be hard-fought and will be matched by sporadic buying.

- EUR and AUD signals generated overnight have moved 120 pips. The SP500 signal will generate momentum and volume with any break below 1240.

- Moves lower in Gold and Silver bullion have drawn in 1650 and 31.00 as major support swing points. Buying-the-Dip momentum will be tested.

- A quiet open to global trade has held most asset classes in near-term ranges. Mid-term outlooks are very mixed and trading on low volume.

- This weeks news headline buzzword: 'Hypothecate'- To pledge (property) as security or collateral for a debt without transfer of title or possession.

- With the SP500 up 0.05% for the year with fifteen 2011 trading sessions left, attention turns to risk tolerance and the impact on bullion and the USD. 

-The response to the Euro-zone bailout summit will be seen in full force this week. Signals will follow when moves happen on decent volume.

- Trade books will have light traffic and heavy volatility as the global market unwinds another schizophrenic trading period, leaving asset classes looking directionless.

- 10-year Treasuries (ZNZ1) breaking above 131.50 and closing the week higher could signal the next leg lower for SP500 trade to test 1175.