Morning Updates

Morning Traders,

Indexes

Last night the market in the US performed very well. Market spiked up when Bernanke came on to talk during Pre-market and continued its momentum right through closing.

the Dow closed up 161 points - 1.23%, S&P500 closed up 19 points - 1.39% and Nasdaq closed up 55 points - 1.78%.

This is in line with our current positive view of the market in this week although we will be on the lookout for changes in circumstances during midweek as indicated by price action. We set our weekly high for the S&P500 futures at 1425 and we are quickly reaching there as we are trading at 1415 as of this morning.

How will this effect our local market:

I am still biased on the long side of the market for the week as I mention in the weekly range post yesterday. We have opened up to 1590.50 up 6.5 points.

The support is at 1574 and resistance is at 1596 and 1598.

I will update on this again as and when is needed.

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CME Grains

Last night I made a post when the grains spiked up and said I would update more on this morning. However, the grains were not able to hold on to the gains and gave back most of that spike up.

Soybean Oil Futures is still trading at about 55.40 while Soybean Futures is still trading at 1380.25 and Wheat Futures are trading at 660.25. Although we gave back most of the gains in the spike in night trading, we are now still trading above the level of yesterday evening (about 6pm local time).

Only Corn Futures gave back its gains in the spike and then some more and is now trading at 639.50. I think the price action of Corn Futures might be a bit of a drag on the other grains commodities prices.. so I will keep a close eye on it.  We are now trading at the lower trend line of the smaller triangle and should we break down further, should find support at 623.

How will this affect out Fcpo:

The prices of grains are still holding so that's important. As long as they still hold on to their up trend, I well remain biased on the long side. I suspect that we will see some pullback.. So be careful if you're scalping..

I think we should have some support at the 3431 and 3418 area and some resistance at 3492 above.

I will update as and when there is further update.

All the best and trade safe.

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Regards,
Tech Trader