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S&P Finishes Higher but Erases Most Day-Session Gains

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

  1. futuretrends24

    futuretrends24 New Member

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

    All three major stock indices finished higher but intra-day trading action suggests that the markets may be getting expensive at current levels. This morning the three indices surged to the upside mostly on strong buying in Asia and Europe overnight. These markets were buoyed by the weaker Dollar and strong demand for higher yielding assets.

    Overnight, stock indices got a boost when the Dollar weakened following bearish comments from St. Louis Fed President Bullard. He suggested that the Fed consider extending its mortgage buyback program beyond the March 2010 ending date. This put pressure on the Dollar because it told traders that interest rates would remain low for a long time. It also offered hints at how Bullard feels about the economic recovery. This caused traders to pile on the Dollar and drive up stocks and commodities.

    After an initial surge following the U.S. opening, traders got a dose of reality with a better than expected U.S. Existing Home Sales Report. The Dollar strengthened on the friendly report triggering a profit-taking break in stocks.

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

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