British CPI and PPI

During the course of the session on Tuesday, we have a lot of announcements that could move the market. One of the strongest will be the British CPI and PPI numbers, but we also have the German ZEW announcement, and of course the handful of US announcements. Ultimately, we believe that a lot of the money will be made in the European Union.

FTSE looks incredibly soft

The FTSE initially tried to rally during the course of the day on Monday, but found far too much in the way of resistance at 6000. Because of this, we did up forming a shooting star, which is one of the most negative candlestick formations that you can see. However, we do have support just below. If we break down below the bottom of the range for the session on Monday, we feel that put buying opportunities will present themselves. On the other hand, if we break above the top of the candlestick for Monday, that is an extraordinarily strong sign it would have us buying calls right away.

Gold markets continue to chop

During the day on Monday, we had a slightly negative candle printed for the gold markets, as we continue to see the market go back and forth. Ultimately though, we are very much in a downtrend so we look at short-term rallies as put buying opportunities.

CAC looks dangerously soft

The Parisian index rallied during the course of the session on Monday, but found enough resistance at the 4600 level to turn things back around and form a shooting star. Much like the FTSE, the market looks very negative, and if we can break below the 4500 level for more than one hour, we are put buyers as the market should then reach towards the 4400 level.