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Stock Market Upside Momentum Stalls

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Feb 25, 2010.

  1. futuretrends24

    futuretrends24 New Member

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

    The U.S. stock market rally stalled after an early morning surge following dovish comments from Fed Chairman Bernanke. In his testimony before the House Financial Services Committee, the Fed Chairman reiterated that interest rates would remain low for a prolonged period of time. While acknowledging that the economy was improving, Bernanke did say that high unemployment remains a concern. Following an initial thrust to the upside, the March E-mini S&P 500 settled into a tight trading range. Investors are trying to assess whether lower interest rates will mean greater demand for risky assets or serve as an indication that the economy is weakening.

    March Treasury Bonds and March Treasury Notes soared to the upside after the latest U.S. New Home Sales Report declined more than expected. This report signaled to traders that interest rates would remain low for some time as the economy still needs to show more robust improvement before the Fed will feel comfortable enough to begin hiking interest rates. This point was re-emphasized during Bernanke’s testimony.

    By the close, Treasuries were unable to hold on to their earlier gains after retracing up to a minor .618 level at 118’05. The lower close indicates that a follow-through to the down side is likely on Thursday.

    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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