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Profit-taking Pressures U.S. Stock Indices

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Sep 23, 2009.

  1. futuretrends24

    futuretrends24 New Member

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

    The Fed FOMC left interest rates at near historically low levels while deciding it was too early to pull out of is current stimulus plans. The Fed also said the economy was improving especially in the housing and financial markets. The FOMC also decided to slow down its debt buying plan by extending its program to purchase mortgage-backed securities into the first quarter of 2010.

    U.S. equity markets reacted with a strong move to the upside but buying quickly dried up as overbought conditions prevailed. Some traders believe that the Fed’s extension of its asset-buyback program is a sign that the recovery is going to be lengthy and labored. Traders feel that equity prices may be overvalued and too far ahead of current economic conditions. The technical closing price reversal top could be an indication that the indices have formed a short-term top.

    Treasury futures reversed earlier weakness to close higher for the session. News that the Fed was going to extend its program to purchase mortgage-backed securities into 2010 sent a message that downward pressure would be on interest rates for at least another two quarters.

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

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