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Obama’s Regulatory Proposal Rocks Equity Markets

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Jan 21, 2010.

  1. futuretrends24

    futuretrends24 New Member

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

    President Obama’s new regulatory proposal to curb trading by financial institutions and the fear that the economy may slow down led to a massive sell-off in equities on Wall Street. Support failed in the stock indices early in the session after fresh money failed to show up. This broke the pattern of the last two days and set the tone for a sizeable retracement break. The trend will turn down in the March E-mini S&P 500 on a penetration of 1109.75, but fresh buyers may step in following a test of 1105.00. If this price fails to hold, then look for a further deterioration to 1095.00.

    The same fear that drove equities and commodities lower helped to lower yields on Treasury Bonds and Treasury Notes. The March Treasury Bonds will turn the main trend up on the daily chart on a trade through 119’08. Currently, this market is retracing the 123’00 to 114’16 break. Because of the increased supply which is supposed to hit the market soon, expect this current rally to be short-lived.

    The stronger Dollar helped pressure February Gold. Liquidation is taking place in this market because the need for a hedge against inflation has diminished now that China has signaled its intention to tighten up its monetary policy.

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

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