Sunday, September 19, 2010

Weekly Forecast - Sept. 19th

Market outlook for the upcoming week:

Bulls are still pushing against major resistance of the 1130 line.  Almost broke out on Friday but ended the day slightly positive showing signs of confusion in the market.

$SPX - S&P500

We will be seeing a bunch of economic reports this weeks which could drive the market in either direction.
Monday: Housing Data
Tuesday: Housing and FOMC
Wedneday: Petro report
Thursday: Housing (again) and Jobs
Friday: Durable Goods and Housing

The S&P500 futures are pushing still pushing resistance.  We experienced a failed breakout on Friday which will only hurt the bulls if we can't get a close after the breakout. 

Currency Pairs:
GDP/USD had a nice bounce of resistance and is now headed toward a stronger resistance line.  Still in uptrend mode so strength here could mean strength for equities.


EUR/USD experienced a nice breakout on a downward trendline.  Currently still trading above the trendline so lets hope it holds.
USD/JPY pressed up against resistance with some downward room to move

Currency pairs are poised to move equities in a positive direction but equities are pressed up against tough resistance.  If bulls can get a close above 1130 on the SP500 then we could be looking at a real run up in price.  Too many more failed attempts by the bulls and we could see a major sell off.  Going to have to follow the news closely this week.

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