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Bad Housing Starts Report Limits Upside Movement in U.S. Equity Markets

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Nov 18, 2009.

  1. futuretrends24

    futuretrends24 New Member

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

    Despite the weakness in the Dollar today, U.S. Equity markets could not get on track for a rally because of a bad housing starts report. This morning’s decline in U.S. Housing Starts capped gains throughout the day although the markets were able to eke out a slightly better close. Traders are beginning to question stock valuations given the current weak state of the economy.

    Treasury futures traded lower throughout the session despite the weak housing starts report. Today the U.S. also reported that the Core CPI rose. This report was most likely the cause of the break as it served as a reminder that inflation was still out there. Technically, today's closing price reversal indicates overbought conditions and could trigger the start of a 2 to 3 day break.

    This weaker than expected housing starts report kept downside pressure on the equity markets throughout the trading session. The choppy trade in the U.S. Equity markets created see-saw movement in the currencies throughout the day. Traders didn't know whether to buy the dips in the Dollar in anticipation of a drop in equity markets or to sell more Dollars.

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

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