Thursday, 28 June 2012

Pre-Market Brief

Good morning. Futures are sp-8, suggesting an open of 1324. Its hot in London city today, hopefully that is now an omen for the bulls to once again get scorched.

I'm again seeing talk across the web of sp'1365/80 in the coming days. It will be important for the bears to stop this latest micro-rally today. Bears should look for the VIX to close in the 21s, for a clue as to tomorrows action.

GDP: Q1 (second revision): 1.9%
Jobless claims:  386k

sp'60min, H/S formation


Bears will most certainly want to see the current 2 day rally come to a firm halt today. A close above the resistance zone sp'1335/40 would in my view seriously wreck the overall bearish outlook.

As I've noted throughout June, how we close the month is very important. A Friday close of sp<1305 would be VERY much preferred.

Good wishes for Thursday trading