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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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Wed, 10/21/2009 - 09:28 | Link to Comment SWRichmond
SWRichmond's picture

Hawkish minutes = liar's poker

Wed, 10/21/2009 - 09:40 | Link to Comment Ivanovich
Ivanovich's picture

DGDF is back in style!  Sell USD!

Wed, 10/21/2009 - 09:49 | Link to Comment Bearish Spirits
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. 

Wed, 10/21/2009 - 10:01 | Link to Comment Gilgamesh
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.


Wed, 10/21/2009 - 10:43 | Link to Comment Bearish Spirits
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.

Wed, 10/21/2009 - 10:26 | Link to Comment Anonymous
Wed, 10/21/2009 - 12:25 | Link to Comment Anonymous
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