Markets Stage Midday Reversal to Close at Highs, Yen comes under Pressure

9:32 PM ET -- With the S and P 500 testing key technical support near the 815 area in the middle of the trading day, and the market not responding well to the ECB's rate decision and subsequent comments by Trichet, one couldn't be blamed for sensing the ominous palatable feeling of a big down day. However, selling pressure abated across a number of investment complexes and saw the metals, energies, agricultures, Dollar-Bloc currencies, and equities. The risk aversion trades, in particular Yen-based crosses and fixed income products felt the pressure as money flows and short covering buoyed things higher. The real question for tomorrow in front of a three-day holiday weekend, is how do we as traders play the next move. During our Netto's Number market commentary on Sunday night where we previewed the week's action, the focus was the key inflection points on the Euro and ES. I have updated numbers that will follow in subsequent paragraphs traders should use as a short term guide to playing this rally, as well as keeping in mind the bigger picture. Keeping in mind how well the currencies are trading, it will be this section I focus my key inflection points on as harmony of a market is one of the three key points I look at when evaluating a trading opportunity. . . . (to read the remainder of this article, please log in below.)