Hot Rolled Futures: Waiting Mode

Financial Markets

Two weeks back we were 1640 on SP 500 and technically it looked like we were headed to 1550-1560 zone as part of a larger retracement. Well the market has dumbfounded the chartists again, and we have since rebounded to today’s level of 1682. We are likely headed now to the 1770-80 zone before seeing a significant pull back. The US stock market is the manifestation of the world’s hope for better things to come as money flight to our shores continues. However, it feels a bit like the whole world is waiting for something, grasping onto slightly positive economic data coming out of China  (August industrial output, retail sales, exports) and the US (positive August auto sales numbers, and slightly improving unemployment number). Meanwhile the underlying picture for the world economies continues to struggle with tremendous headwinds from debt levels, to unemployment and wage issues, not to mention whole regions that are in political turmoil.