During the course of the day on Wednesday, the only notable we have of note will be the Crude Oil Inventories number coming out of America, and that of course will move oil, but beyond that it should be a fairly straightforward trading session.
DAX looking to consolidate
The German index looks as if it is ready to consolidate even further, between the €9800 level on the bottom and the €10,100 level on the top. If we can break above the top of the shooting star from the Monday session, we are willing to start buying calls. We also believe that short-term pullback should offer call buying opportunities as well. It appears of the German index is trying to break out.
FTSE looking to break out
The FTSE fell initially during the course of the session on Tuesday, testing the 6100 level. We found enough support down there to turn things around though, and therefore form a hammer. The hammer of course is a bullish sign and as a result we believe that the buyers are going to try to push this market much higher. If we can close on a daily chart above the 6200 level, we are call buyers.
Swiss franc showing strength
The US dollar initially tried to rally against the Swiss franc on Tuesday, but as you can see we continue to struggle just above the 0.97 level. On a break down below the bottom of the range for Tuesday, we believe that the buyers will reenter the market and push this pair down to the 0.95 level given enough time.
NZD/USD: Finds strong resistance at 0.6870.
The NZD/USD shows weakness to break the resistance level. Currently is trading close to the area of 0.6700-0.6600. We might be buyers of put options in case of a move below the 0.6700.
On the other hand, a break above the resistance level of 0.6870, it possibly will open the way for call options.
S&P 500: Continue Rising.
The Index is trading upwards, with a daily close above the area of 2000.00. It could be interesting of buying call options for the S&P 500. Near-term resistance is at 2075.70, with a break above that exposing the level to move higher.
