This week’s financial spread betting update is now available and can be read by clicking here.
Following last week’s announcement from Standard & Poor regarding the possible downgrade of the US Credit rating which led to an initial sell off in several markets, most markets staged a strong recovery. Gold and Silver continued to edge higher and in yesterday’s trading (Bank Holiday Monday) Gold hit new all time highs and Silver a new 30 year high, hitting just shy of the $50 mark on the July contract.
This week sees the Federal Reserve meeting on Wednesday which is an event watched by many. This is especially the case as we see the US dollar continue to weaken. The meeting is expected to see the same things being said again, with the US expected to continue with their ultra-loose monetary policy. The only thing that is possibly bullish for the dollar now is that there is so much negative sentiment towards the dollar and so many short positions (many traders are looking for 7070 on the dollar index) that we may get a bounce purely from the standpoint that pretty much everyone who wants to be short the dollar probably already is.
The S&P 500, which is very much a market in focus, failed once again to take out the highs of the year and as we wrote in this week’s spread betting update there is a real possibility of an inverse head and shoulders pattern forming. If the neckline is broken that would give an upside target of around 1430. However, it must be noted that patterns as obvious as this seem to be a talking point with virtually all traders and this has a tendency to not make the pattern work. It will however be worth watching and regardless of the pattern, a break above the neckline will also be new highs for the year so would be an upside breakout regardless.
This week’s financial spread betting update begins with:
The past week was a shortened week due to the Good Friday holiday but it was nonetheless an eventful week. The week began with Standard & Poor rating agency saying that they were considering downgrading the triple A credit rating of the US and this sent the markets into turmoil.…continue reading by clicking here