Friday night saw a similar pattern evolve with the market drifting off in Euro trade before rallying in line with the US – the market seemingly optimistic that Greek voters would vote to remain in the Euro at the weekend election & that global central banks would be ready to act should they be required. Pro bail out party New Democracy has won the vote & with the help of Pasok will be able to form gov't which was the favoured outcome by Euro zone leaders. One would expect a relief rally of sorts this morning so watching Globex on the resumption will be wise – overall however any strength will just be glossing over the real concerns that remain in the Euro zone & the market will turn – just a matter of when it does so, strength for 24 – 48 hours could be expected as world markets open & get their chance to respond to the news. Looking ahead clearance of the 4105 area sets up a retest of the 4140 – 4160 area which held a week or so ago, strength through here brings the 4210 area into focus. On the flipside support in the 4120/25 area followed by 3980 is now well documented.
CASH CLOSE 4057.3 FAIR VALUE + 1.7
EMINI 1337.50, DOW + 115 , GOLD + $ 8.50
SYCOM CLOSE: 4078 HIGH:4085 LOW:4054
RESISTANCE 4092, 4098, 4105*, 4118, 4127, 4138/40, 4156/58**
SUPPORT 4043, 4028, 4021*, 4012, 4004, 3995, 3980/88***