Binary U.S markets witnessed a steep downside move on Friday. Worse than the expected data from the Labor Bureau, about the non-farm payrolls sparked a significant sell-off. The downside pressure on S&P500 continues on Monday. Binary traders bought many binary put options and managed to earn huge gains. It is easier to trade, when there is just one prevailing direction. The problems come when the move is not so clear and it is sideways.
Binary S&P500 continues trading in an upside channel since May. Binary options faced a strong resistance reaching the major trend line drawn from 1420 points through 1380 points. The binary index attempted to break above but the resistance managed to withstand. The downside pressure could have increased even without being supported by the economic data.
Currently, the binary options drift further lower losing about 7 points. There are no significant supports on their way down. It is highly possible to hit the lower band of the channel which plays a role as a support so far. The potential target is 1340 points.
Today, is the beginning of the earning season. It is important to realize what are the quarterly results of the American bellwethers, in order to gauge the impact of the financial crisis on the local economy. The volatility is expected to leap, giving plenty of room to the binary traders to place multiple bets and to be profitable.
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.