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Stocks Plunge after Hours Following Fed Discount Rate Hike

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Feb 18, 2010.

  1. futuretrends24

    futuretrends24 New Member

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

    U.S. stock indices plunged after the close following a discount rate hike by the Federal Reserve. Although the hike was not a surprise per se since Bernanke and the FOMC minutes hinted it would happen, the timing caught traders by surprise.

    While not actually tightening the financial system, the Fed sent a signal that the stimulus days are ending and that more rate hikes should be expected. Stock indices sold off in post-market activity. Earlier in the trading day, the March E-mini pierced the psychological 1100.00 barrier triggering an acceleration near a .618 retracement price at 1107.00. Buying dried up at 1106.75 until the close.

    The markets traded higher throughout the day although in a volatile manner. Weak U.S. Weekly Jobless Claims came out higher than expected, driving stocks lower this morning, but investors quickly bought the dip before rallying after the release of the bullish leading indicators report and the Fed Philadelphia survey.

    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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