The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
The S&Pclosed the cash session at 1755, which is right on the former uptrend support drawn from the November 2012 pivot. If we see a close above this level tonight and I will look to close the short trade and potentially take profits. It’s also worth looking at the hourly chart (seen in the chart below), which tested and rejected the 38.2% retracement of yesterday’s 1794 to 1738 fall at 1760. A break above 1760 could also be well received by the bulls
In US trade we get the latest ADP private payrolls report (due at 00:15 AEST) and the services ISM survey (02:00 AEDT). Both are very important US data points and while the jobs report is expected to fall, the services survey is anticipated to grow at a slightly faster rate (53.7). This represents a real risk for the trade and good numbers here could push the market higher.