Archived IMT (2010.05.25)

GLOBAL MARKETS SELLOFF extends into US futures, which are down 2.5% following another 3% decline in the Nikkei-225. S&P500 futures -2.4%, testing the Feb 4 low of 1044, a break of which calls up the 100-week MA at1023. Escalating tensions between the North Korea are providing the latest excuse for the sell-off, but if Korea were truly the main reason, then JPY would be weaker and not stronger. JPY has taken over from USD as warned in earlier IMT. USDCAD eyes 1.0820, which is a clear break of the 1.0780s congestion resistance from last November. UK Q1 +0.3% as expected from prev 0.2%, but that's likely to retest 1.4230s, with resistance limited at 1.4330s. A break of 1.4230s stands to call up 1.3960 as med term target. Watch Ashraf's CNBC appearance breaking down GOLD vs EUR http://bit.ly/cn6M4y