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Bernanke Comments Boost U.S. Equity Markets

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Aug 22, 2009.

  1. futuretrends24

    futuretrends24 New Member

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

    Friendly comments from Fed Chairman Bernanke regarding the economy helped send equity prices soaring on Friday. Speaking to a group of bankers and financial industry officials, Bernanke said that the global economy was emerging from recession. This comments sent a wave of optimism through the equity markets which drove the stock index futures to their highest levels for the year. In addition to the Bernanke comments, news that U.S. existing home sales rose contributed to the rally.

    Now that the stock markets have cleared an important resistance level, the charts indicate there is plenty of room to the upside. Skeptics however are noting that the rally took place on option expiration day and under thin conditions which may have exaggerated the rally. Some are remaining cautiously optimistic by calling for a pullback while the more bearish skeptics are still calling for a 10 - 15% correction.

    September Treasury Bonds and Notes fell following Bernanke’s positive comments and after the release of the better than expected U.S. existing home sales report. Investors may be looking ahead to next week’s Treasury auction. Because of the stock market rally and increased demand for higher yielding assets, investors may demand a higher yield at next week’s auction. Traders could also be pricing in the possibility of the U.S. leading the world out of the recession and being the first central bank to raise interest rates.

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

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