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During the Thursday session, we do not expect much in the way of economic announcements, but at the end of the day we recognize that the most important thing is the fact that Friday is the Nonfarm Payroll announcement. Ultimately, this market should continue to be more technical in nature as we await that vital information.

The EUR/USD pair tried to rally during the course of the session on Wednesday, testing the 1.08 handle. However, this area has been resistive more than once and therefore we feel that it makes sense that put buying continues to be the way forward. We believe that the EUR/USD pair will head down to the 1.05 handle given enough time as the European Union continues to struggle with deflation and a very loose monetary policy out of the ECB.

The gold markets broke above the $1200 level, and as a result we think that the market might test the $1220 handle next. That area is massively resistive, and as a result a resistive candle between here and there would be a nice put buying opportunity. On the other hand, if we break above the $1220 level, the gold market will then be a very bullish market that we will continue to buy calls in going forward. 

The S&P 500 (SPY) fell during the session on Wednesday, but found enough support to turn things back around and form something akin to a hammer. Nonetheless, this is a market that you will have to wait until the Nonfarm Payroll numbers come out. Ultimately though, we do believe that this market goes higher and we are much more comfortable buying calls than anything else.