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Stocks Recover as Buyers Step in after Midday Break

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Apr 20, 2010.

  1. futuretrends24

    futuretrends24 New Member

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

    Buyers came out the second time bearish traders tried to flush weak stock investors out of the market about midday on Tuesday, triggering a late session short-covering rally which enabled the indices to close on their highs.

    After an early morning short-covering rally, U.S. equity markets resumed their sell-offs, and made new lows about mid-session. The inability to follow-through to the downside scared shorts out of the market, triggering a strong rally that built upside momentum into the close. Fallout from the SEC/Goldman Sachs situation was the main reason behind the early session weakness in the U.S. equity markets. Last week’s closing price reversal top in the June E-mini S&P 500 was confirmed. This pattern sets up a potential break to 1178.75 but the strong close indicates it may take a day or two before the down move resumes.

    Monday’s action took back about half of the break from the 1250.50 top in the June E-mini S&P 500. If this market is going to go down then look for selling pressure to begin between 1195.25 to 1198.75.

    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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