Monday, October 3, 2011

The Big Picture: We are at important levels

More than a week passed since we last posted our broader view on the markets. Unfortunately the sentiment didn't change much, the bears still controll the markets.  What is very important to note that many instruments are approaching key support levels. Should these levels fail we might see some more sell of. So this week might be critical and we can hope that the old saying, that prices don’t go straight up or down, holds true and we see at least some correction in the coming days.

SP500
The index is at the 1,115 support where we see some signs of potential bounce back . The next critical level  is at 1,080 that is a lowest low now. Should that break, markets could switch to a freefall mode.

DAX
The German index bounced back last week from the 5,000 level which is a critical support. Suprisingly it had somewhat better relative performance last week than its US piers. Though, the bounce back trendline support was broken down again so we might see again a retest of the magic 5,000 level.

OIL
The WTI is still very volatile and difficult to reed its chart. The critical support is at 76.00.

EURUSD
Despite to the small correction later last week EUR felt to a new low this morning.

CARBON
Carbon had a terrible month in September. The price is retesting twice now the 10.25 lowest low we saw back in August. The chart is still really very bearish and we should wait and see how this 10.25 holds this week.

In general we might say that it is better to look for short opportunities once critical levels fall. Trying to catch the bottom is a very difficult and risky exercise.

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