Shore Capital Management LLC

On 8/4/09 the Canadian dollar (basis Sept) peaked at 94.08. On 8/17/09 the market bottomed at 89.87. The market has fallen into a trading range scenario with an upward bias.

There is major support around 90.00. On 8/31/09 the market tested this support as it reached 90.13. It is possible for the market to test this area again. If it doesn't hold this area, 89.50 to 89.00 would be the next support level.

There is major resistance in the 91.50 to 92.00 area. As the C$ is a commodity driven currency, it could be kept in a trading range until crude and grains finally breakout of their respective trading ranges.

The emini S&P (basis Sept) has finally moved into a trading range.

There is major support in the 1010 to 1007 area. If this is broken, the next support level is 997 to 992. This may be the correction we have been looking for.

In our last comments  on 8/22/09 we noted the market maybe headed toward a back and fill type action. It appears we have been experiencing this type of trading recently.

Resistance is 1018 to 1023. The market appears currently tired from its run beginning in July. There is major resistance in the 1027 to 1032 area. As liquidity decreases this week and part of next week due to the Labor day, this would be the ideal time for the market to make a correction.