MidSession Review:

In today's game plan we wrote:

Support Level: 2470.  According to us around the 70 mark we will see some buyers entering the market, if the level will hold and the newsflow will work on the same side, the market could easily reach the 2526 level.

Buyers stept in and newsflow coming from the US, now more than ever world market's locomotive, worked on the same side.

ADP Employer Services reported private employers hired 162,000 workers in September after they hired 201,000 the month before. The report comes two days before the Labor Department's September payrolls report.

We need to point out that ADP has lost its relationship with government payroll figure therefore be careful if you are building up a long position expecting NFP to beat expectations, because Friday's market move could possibly be completely different.

Futures for the DJIA rose 0.02% to 13,414, while those for the S&P500 Index added 0.70 points to 1,441.90. ISM's survey of business confidence is expected to hold steady at 53.7 for September according to Marketwatch; the figure has the power to change the trading day because European mess weights on investors' head.

According to Markit the final euro-zone composite purchasing manager's index still pointed to a steep monthly downturn for the Euro region and a return to recession in third quarter.The index fell slightly to a four-month low at 46.1 from 46.3 in August, coming in a shade above a preliminary estimate of 45.9. A reading of less than 50 indicates a contraction in activity. The services PMI fell to its lowest level since July 2009 at 46.1, down from 47.2 in August.

The gloomier economic data pressured european shares in the morning session, US figures offered some relief therefore if the ISM figures will come worst than expected the relief feeling will be wiped out and longs will start taking their hands off from the table.

Minutes before the US opening bell the Stoxx50 fell 0.10% to 2,491, the German Dax held on the flat line rising 0.08% to 7,311.78. In Souther Europe the Italian Ftsemib led gainers up 0.48% to 15,570.90 while in Spain, the country kept under high security surveillance, the Ibex fell 0.27% to 7,846.10 as investors wait for the Spanish dilemma to be solved.

Since the request, when it comes, will likely spark big demand for the euro, investors opted to wait, leaving the single currency virtually unchanged against the dollar at $1.2920, above the three-week low of $1.2803 hit on Monday. Remember if the 6E 12-12 held the 1.2900$ mark then longs had the currency on their side (from our today's game plan).

Ten-year Spanish government bond yields were little changed at 5.76 percent, while two-year borrowing costs rose slightly to 3.24 percent.

On the commodity side:

Crude oil prices and commodities like copper were hit as the weaker data dimmed the outlook for demand. Brent November crude futures fell $1 to $110.57 a barrel, while U.S. November crude shed 60 cents to $91.30 a barrel. Three-month copper on the London Metal Exchange had eased 0.5 percent to $8,283.00 a metric tonne, after climbing more than 2 percent over the past four sessions.

Gold rose 0.24% to 1,779.90$ an ounce as it regained the safe heaven status.

With the US market about to open we need to have clear in mind that the market close when the bell ring, therefore stay with your plan and do not get too emotional; we got volatile days ahead.

Originally posted at www.77sigmatrading.com