Morning Note - Stocks edge higher

**16/09/10  -  8.41am  -  by James Gerrish

The JPY hit 15 year highs against the Greenback on Tuesday prompting the Central Bank to intervene for the first time since 2004. The high Yen is putting significant pressures on Japanese exporters and the economy continues to struggle. It appears that the majority of economies are trying to export their way out of trouble.

 China has been chastised for its devaluation tactics while the US (I would think) is unfazed by the impact of quantitative easing on the value of the Dollar against other major cross rates. Australia is also in the mix however we're fortunate that our major exports are commodities with rising metals prices helping to offset the impact of a rising AUD. 

The market was initially lower overnight (in the US) after some economic data from the New York region came in below expectations. It shows how bullish the market is at the moment when bad news in shrugged off and buying momentum continues. Looking technically at the chart of the S&P 500 CLICK HERE , there is a clear level of resistance at 1130. The market is very close to this level and we need to see a break to initiate another leg higher. 

We've seen the similar structure in the local market however we've now broken through resistance - however it’s critical for the continued strength locally that the US follows through with its move. 

Overnight, the DOW JONES added +46 points or +0.44% to 10572. In London the FTSE 100 lost -11 points or -0.21% to 5555. Locally, SPI Futures are indicating a rise of 11 points on the open.