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Late Session Buying Spree Sends S&P 500 to New High

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Mar 12, 2010.

  1. futuretrends24

    futuretrends24 New Member

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    Today’s sample of Futures Analysis from FuturesHound.com

    U.S. equity markets finished higher after treading water most of the day in sideways-to-lower trading action. Traders seemed to be waiting for a catalyst all day. Near the close equity markets mounted a strong surge to finish on their highs.

    Thursday night, news that China’s inflation rate was higher than expected, fueled speculation of a rate hike which helped drive down demand for higher yielding assets. The lack of follow-though to the downside, however triggered a short-covering rally which helped to boost equity prices from their early morning lows. The March E-mini S&P 500 broke through the January top at 1148.00. This action kept this market on pace to reach the March 12th objective of 1156.00.

    June Treasury Bonds recovered from earlier losses to close better. Earlier traders sold Treasuries in anticipation of a possible rate hike by China. The inability to break -through yesterday’s low at 115’27 triggered a short-covering rally near the mid-session. Technically, this market picked up strength after regaining a 50% line at 116’04. This price will dictate the direction of the market over the short-run. Holding above it means the market is discounting the Chinese news. Falling below it will indicate a further drop to 115’06. If the rally continues, then look for a retracement to 116’30 to 117’06.

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

    Disclaimer: Trading on 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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