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Futures Market Technical and Fundamental Recap

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Jul 1, 2009.

  1. futuretrends24

    futuretrends24 New Member

    Apr 30, 2009
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    Today's Futures Analysis summary

    The rally in the September Treasury Bonds seems to be losing steam. Although the charts indicate this market has room to rally to 121’02, it looks as if traders may have to break this market a bit to relieve some of the overbought tension. This may mean this market may have to retrace to 115’13 to 114’17 to attract fresh buyers.

    Over the short-run this market has been finding support because of end of the month position adjusting. Longer-term this market is most likely going to work lower because interest rates are expected to rise. The major players know this but are unwilling to sell Bonds in the hole. This means this market is likely to retrace at least 50% of the March to June break. Expectations are for this market to test 121’02 to 123’09 before fresh sellers step up.

    The September S&P 500 traded sharply lower on Tuesday after failing to penetrate resistance at 926.50. This market sold off following a report that U.S. Consumer Confidence fell. Traders also backed away from buying strength again ahead of the July 2nd U.S. Non-Farm Payroll Report and Friday’s U.S. market holiday.

    Traders are also looking forward to the start of the next earnings season. Now that half of the year is over along with the fear and panic that dominated the financial markets for the first two months of the year, investors will be looking forward to seeing signs of a recovery reflected in corporate earnings.

    The 90-day rally in the equity markets seem to be running out of upside momentum and may need to see positive news that the economy is indeed beginning to bottom. Stock prices are at pretty lofty levels and investors are going to want to see the hard numbers to back the rise. If corporate earnings do not justify the rise in equities then look for a sharp sell-off as investors will bail out of overpriced equity markets and try to buy back later in the year at more reasonable levels.

    By FuturesHound.com the portal for Analysis, Education and exclusive timely market Gann Analysis .

    Disclaimer: Trading Futures on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.

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