Core CPI to be the main driver
The Core CPI numbers coming out of the United States will be the main driver of economic markets during the session on Friday, but at the end of the day we feel that the market will probably just follow most of the technical analysis that we have been looking at for some time. With this though, we do recognize that the Core CPI can have a fairly strong effect on the US stock markets.
S&P 500 continue to go higher
The S&P 500 (SPY) had a very bullish session on Thursday, and we believe that it’s only a matter of time before he break out to the upside. If we pullback from here, we are looking for support in order to serve buying calls yet again. We have no interest in buying puts, even though we do recognize of the market is probably little bit overextended. The 2100 level below should be supportive, just as the 2080 level will be below there.
DAX breaks out
During the session on Thursday, the DAX broke out above the €11,600 level, making this market very bullish and showing that we are going to continue going higher. Every time this market pulls back in the short-term chart, we are call buyers as the DAX should continue to find plenty of buying pressure underneath.
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Let us not forget France either
The CAC rose as well, and looks very much like the DAX. Without a doubt, we are call buyers going forward as the €5100 level should be supportive, just as the €5000 level will be as well. We have no interest in buying puts, and recognize that the CAC should continue to go much higher right along with the DAX.
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