There has been a very strong tendency for the indexes to mean-revert around 1800 for the Nasdaq 100 and 1100 for the S&P 500 for the past two weeks. We have not had sufficient momentum to break above those levels for very long for lack of that can break the indexes out. Despite that, we are ramming up into resistance levels across the board for all major US indices. If US equities can close above the following key resistance levels, we may see another breakout rally before the end of the year.
Nasdaq 100 Major resistance is now at 1812.50.
S&P 500 Major resistance is at 1112.38.
DOW 30 Major resistance is now at 10502.
Important News of the Day:
At 11:30 GMT the British Consumer Price Index will be released. The consensus among economists is for a reading of 1.8%. Anything higher could counter-intuitively strengthen the Pound due to increased expectation for a BoE rate hike.
At 12:00 GMT the German ZEW Economic Sentiment will be released. GoForex traders should be prepared for a swift drop in the EUR pairs if the number comes out weaker than the 50.1 expected.
At 15:30 GMT the United States will release its month over month PPI numbers. GoForex traders be aware that any reading at or above 1% will fuel the turnaround in the Dollar and likely send Gold and Silver retracing higher.