Long S&P500 @ 1043.5

Although we have profited substantially from shorts at 1101 earlier this week, let us not forget our mandate: buy dips! Since March lows of 666 we have consistently made higher highs and higher lows. Today, ahead of 3Q US GDP, the S&P500 is testing ascending support that has been in play since those market lows. Is this reason sufficient for us to effect a long position? In and of itself, no. Consider this however: The EUR/USD, often considered a mirror of global indice health, is also at a key level of support. The stochastics on both charts seem to bottoming out and RSIs both look to turning higher. On this basis, we have executed a sizeable long position at 1043.5 on the S&P500 with a moderate stop loss to compensate for the inevitable noise around the US GDP data. Please note, we would not normally effect a position ahead of such a key figure, howerver, the statistical and technical evidence in favour of our doing so is overwhelming.

Safe trading all!