In relatively quiet times like this, I like to take time to look at a few charts and sometimes its amazing to see how quickly sentiment changes. Go back if you will to the beginning of July, where a worse than expected payroll report triggered a fall in the S&P future down to 865 on the 8th and the 13th July. Less than a month later we’re an amazing 15% higher at 995.00. As you know by now trying to pick tops is a very inexact science, but in a move that severe a period of digestion needs to take place and the run-up to the next Payroll report may just be the time for it to happen.
Eur/Usd has tip-toed over 1.4400, but further gains are proving to be tough with 1.4405 our level at the moment. Many traders are looking ahead now to the three-pronged event risk that comes in the first week of the month, with many questions needing answers from the BOE and ECB meetings and the Payrolls report on Friday.