Morning Update

Tyler Durden's picture

From Nic Lenoir of ICAP

Weakness in Fixed Income this morning following hawkish minutes by the Bank of England. Technically we had been calling for a rebound from 117-20/117-28 to about 118-28+/119 for the 10Y future. We almost reached the target for the retracement yesterday. As can be seen on the daily chart there is a key support around 117-26, which if not held would trigger an acceleration straight to 116/116-20. We think medium term this remains the risk ever since we tested 119-23 and failed to break to the upside. Waiting a break below 117-26 or above 119 we would be trade 10Y future in that range.

As I type the S&P future just broke our intermediate support from yesterday at 1,082 which had held quite nicely so far. The key level remain 1,075/1,076. A break there would probably mean we will go test the 1,033 level, support of the open triangle on the daily chart. Watching the Dax in parallel as we have been pointing out the past few days we tested 5,750 as expected. It is key to accelerate here lower, otherwise if we consolidate and fail to go break 5,690 we face a strong risk to go test 5,925. These two levels 1,075 for the S&P and 5,690 should be both watched carefully as they will indicate the medium term direction. The chart of the Nasdaq shows how we posted a bearish candle yesterday on the tops and a major resistance, it is imperative we have confirmation today and accelerate higher. Failure to do so would mean we will extend higher as the RSI shows there is upside potential. Translated in S&P futures a break above 1,091 will take us straight to 1,003/1,007. 1,090/1,091 which was our downside pivot yesterday will be the upside pivot today.

Good luck trading,


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SWRichmond's picture

Hawkish minutes = liar's poker

Ivanovich's picture

DGDF is back in style!  Sell USD!

Bearish Spirits's picture

The dollar tanked almost a half point in an hour or so to avoid a gap-down open, the majority of that coming at the open to drive the market positive.  Pathetic. 

Gilgamesh's picture

Chill out man, you make it seem like the intentional dollar debasement is some kind of story.  Clearly you have some kind of ulterior obsession; I think it's time for a hit piece:


Wow.  I have to believe that 'they' have ZH on their radar, and it will be the next target when the heat gets turned up a notch.


Bearish Spirits's picture

Yeah, I am just an obsessive.  We know Drudge sold all his DXY holdings at the open today.       :-)


Maybe the media will demand to know who the "unpatriotic" posters on ZH are as well.  Those who try to search out the facts are a dangerous bunch.

Anonymous's picture

Stocks higher on banks profits. How much longer do we have to hear that crap. Heres some other blank statements I would like to see attacked and exposed:
"We cant take away bonuses, we'll lose the best and brightest".
Ive always wanted to see that paradigm attacked. Who says they are the best and brightest? What makes them the B&B? Is it just that they learned how to screw up the worlds economy and they worked hard to inherit the rolodex of the other good ole boys willing to go along with "the plan"?
They are the root of our problems and they need to go. We need to re-shuffle the deck , maybe the best and brightest is someone right out of college with a new perspective.
I really would like to see that best and brightest bullshit taken on in the same way HFT was. If there was a test for b&b i think we would all agree they already failed it. Why cant we force a changing of the guard of the world's economy? Thats the real problem here. FIRE THE BEST AND BRIGHTEST.

Anonymous's picture

From the link of Gilgamesh" Any kind of coordinated attack on the value of the dollar could be seen as a national security threat, and defense and intelligence officials were curious about the source of the anti-dollar rumors that day. "So (politico)is hinting that some officials think that the Drudg report might be the culprit behind the dollar decline. Well it isn't stated exactley like that,rather it is one of those yes no maybe. However,the monetization of trillions of dollar got nothing to do with it. So to all of you traders out in lala land,check the drudge report before you buy or sell currencies(lol).