1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

S&P Posts Daily Reversal Top

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Dec 2, 2009.

  1. futuretrends24

    futuretrends24 New Member

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

    Wednesday’s weaker than expected ADP Report for November helped contribute to today’s drop in demand for higher risk assets. This led to a stronger Dollar as traders sought safety in the U.S. currency while reducing exposure in riskier stocks and commodities.

    Later in the afternoon, trader focus shifted to the Fed’s Beige Book. This report did not reveal anything new about the economy, and basically confirmed that the economy is on the road to recovery albeit a rough path. The report also backed the Fed’s decision to keep interest rates low for a prolonged period of time.

    The December E-mini S&P finally broke through the November top at 1112.25, triggering stops all the way to 1115.50 but could not attract any buyers on the breakout and finished lower. The first clue that this rally was going to fail came from watching the Dollar. The Dollar remained firm when the S&P rallied. This divergence caused the buying in the stock market to dry up. The closing price reversal top which was formed today often leads to a 2 to 3 day break. A break through 1104.25 is likely to trigger an acceleration to the downside.

    Read 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.

Share This Page