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Equity Markets Attempt Comeback but Finish Lower

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Oct 16, 2009.

  1. futuretrends24

    futuretrends24 New Member

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

    U.S. equity markets posted a strong recovery late in the trading session following a sharply lower market in the morning, but still managed to finish lower for the day. The early session break was triggered by Bank of America which reported a huge loss. Further weakness was fueled by worse than expected earnings report from General Electric.

    Once again traders are questioning valuation in the stock market and wondering if the current lofty levels are justified. Clearly bullish earnings numbers seem to be already priced in, so next week companies are going to have to *** investors with their numbers or this market will turn south in a hurry.

    Treasury futures benefitted from the weaker equity markets on Friday. All week yields had been rising but today investors took advantage of those higher yields when they reallocated funds from equity markets to fixed income markets. December Treasury futures finished its 50% retracement of the recent rally and are now in a position to rally further. More downside pressure in the equity markets is needed to launch the Treasuries higher.

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

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