The CAC 40 futures index got a bit of a boost at the €3400 level on Tuesday as we formed a hammer. The continuation of consolidation looks to be what the market wants to do, and as such we are willing to go long of the futures market on a break of the Tuesday highs. We believe that the move will be capped at the €3550 level, so this is a short-term trade.
As for shorting this market, we would have to get underneath the €3300 level, as it is the bottom of a gap that formed back in the early part of August. We have been consolidating every since then, and as such we feel that more than likely this market will continue to do just that.