This morning weakness on both is attributed to no Geithner-TALF-like bazooka at Ecofin meeting in Poland.
Let's remember though, that we have an FOMC meting next week. My thinking is that SPX and EUR/USD are going to run somewhat higher from here in anticipation of some QE from Fed. This said, it will be a limited advance to the resistance levels I mentioned yesterday: SPX 1220 - 1230 and EUR/USD 1.4050 - 1.4140
Market will be disappointed with Fed announcement, resulting in SPX and EUR/USD sell-off from aforementioned levels during the 2 week vacuum until Q3 earnings. Be ready, it will be quick. Read my SPX roadmap post for levels to watch. http://viewonmarkets.blogspot.com/2011/09/roadmap-for-spx-from-sep-15-to-dec-31.html
Thank you for sharing your insights. They are much appreciated. Please continue to guide us lesser traders. Be well.
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