Game Plan: 28/09/12

FESX 12-12:

Going back to how we played the last move, we entered a short position once the 70 mark held. The future was unable to break the resistance level, our short bias was confirmed by  the cross asset analysis therefore we started building up a short position.

Even if our short bias was still in place ahead of the Spanish press conference we closed out the short position, our first target was the 500 level reached once the 526 support was broken in a clean way.

At this point in time we need to be careful because: if on one side nothing changed in our analysis to suggest a bias' switch, on the other side as we said in today's Morning Meeting is a Window-Dressing day. We expect the trading day to offer some hints on the market's mood. If the rally will be sold off than we will have a further support for our short bias if, instead, the market will resume its move along the Line of Least Resistance than we should start to review our stance.

The 2526 level will be a nice level to study, it will offer a temporary resistance, a breakout will drive the future to check the 50 mark.

The EuroFX futures 6E 12-12, used as a confirmation vehicle, broke the 1.2900$ mark, reaching during the Asian session the 1.2950$, this level has been pointed out as first target. At this point a minor pullback chances are rising but if it will be able to stay away from the line that held the move since the 17th of Sept than equity longs will be supported.

As we said it's a Nerve Game.

Originally posted at www.77sigmatrading.com