Financial Spread Betting Update 29th August 2011

This week’s financial spread betting update is now available and can be read by clicking here.

This week is a shortened trading week in the UK due to the Bank Holiday, so the FTSE is catching up with strength from yesterday and has already been up by 100 points this morning. Whether the market can hold on to those gains though remains to be seen as it looks highly likely that we will record the most volatile month of August on record for the FTSE this month, so further swings can be expected over the last 2 days of the month.

So far this week stocks have continued with their advances from last week and are at the time of writing testing fairly critical short term resistance points, in particular around 1208 on the S&P 500. A break above this level may lead to a move higher towards the next resistance area around 1250. The trend however is still down in spite of short-term strength and as we cover in this week’s update, we’re still in a longer-term bearish formation with lower highs being seen.

It’s also worth noting on the stock indexes side of things that September is seasonally the weakest month of the year, with seasonal weakness often taking effect in the second week of the month.

For the most part the dollar is higher this morning so we are not at present seeing the usual US dollar weakness that normally coincides with rising stocks.

This week’s financial spread betting update begins with:

Volatility has remained high once again over the past week, with some large swings seen in stocks and commodities, especially Gold, which made a new all time high and then a steep sell-off followed. The long-term trends remain down for stocks and the dollar and mixed for commodities…..…continue reading by clicking here

Good trading

Phil Seaton

 

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