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Absence of Major Buyers Keeps Lid on Equity Markets

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Jan 7, 2010.

  1. futuretrends24

    futuretrends24 New Member

    Apr 30, 2009
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    Today’s sample of Futures Analysis from FuturesHound.com

    The absence of major buyers ahead of this week’s U.S. Non-Farm Payrolls Report was evident today as stock markets weakened following friendly jobs and service data. In addition, today’s Fed minutes weakened the Dollar because of greater demand for higher yielding currencies, but this weakness in the Greenback failed to turn into greater demand for equities. Usually the first week of January sees an increase in cash from institutions and mutual funds, but this year, this buying power has remained on the sidelines while the major players await this week’s employment data.

    After trading lower overnight, March Treasury Bonds tried to mount a recovery but failed. Today’s early economic reports indicated the U.S. economy was gaining strength, but this afternoon’s minutes showed that the Fed was still concerned about the pace of the recovery. Treasury traders seem to be content with keeping the T-Bonds and T-Notes in a range until more clarity is established. This may mean more sideways action tomorrow.

    Yesterday the main trend turned up on the daily chart. The chart pattern suggests that a rally back to 117’15 is possible if upside momentum can continue. At this time, the market is correcting the short-term range of 114’16 to 116’05.

    Read full article at full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

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