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Equity Markets Eke Out Small Gain in Choppy Trade

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

    Stock Index futures eked out a small gain in a choppy, two-sided traded. The stronger Dollar was the driving force behind much of the early selling pressure. The inability to break the Dollar in the afternoon triggered an intra-day short-covering rally in the equity markets into the close. Conditions are close to being overbought which could mean that a pull-back may be in the offing. Traders are also beginning to question whether the stock market is too far ahead of the economy given the recent bearish statements by Fed Chairman Bernanke.

    Treasury markets posted a small gain today after spending much of the morning on the down side. Today’s rally was most likely a follow-through rally following yesterday’s strong surge to the upside. On Monday, Fed Chairman Bernanke reiterated the statement from the Fed FOMC committee which called for lower interest rates for a prolonged period of time.

    The U.S. Dollar managed to close higher today despite late session attempts in New York to erase earlier gains. This is strong evidence that most of today’s rally was due to short-covering rather than fresh buying. Comments from ECB President Trichet were supposed to show support for Bernanke’s comments from yesterday, but actually helped ignite the rally in the Dollar. Technically, the Dollar is oversold on the daily chart. This is another reason for today’s up move.

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

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