To trade the US Markets you Must Understand the S&PNovember 22, 2012
They are probably buying the S&P futures because they reckon a fiscal cliff deal could happen.
They would be stupid if they couldn’t get a deal done. This move has been going on since we picked it up on that stop run last Friday, shown by the black trend line on the chart.
The Dollar is responding, hence the EURUSD is moving up. Of course the EURO also has its little bits of news affecting it. This move on the S&P futures is probably a buy the rumor move and many might sell it on the news.
However if the deal is good then the US market could take off and the Dollar would weaken pushing up the EURUSD. Below is the S&P futures move that’s in play this week. Its now up 5 days in a row that’s why I say it’s hot.
I’m not too interested in peoples commentary that are either to technical with their charts or ones that are to interested in fundamentals. I want the middle ground. I want the move that’s in play and understand why its probably occurring.
Then I want a trading system that helps me get my timing right on where I perceive that action is. That way I make good profits. Here is the chart on that S&P futures move.