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Stocks Reverse Course after Fed Keeps Rates Low

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Apr 29, 2010.

  1. futuretrends24

    futuretrends24 New Member

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

    U.S. equity markets rallied to a new high for the session after the Fed left interest rates unchanged at historically low levels and remained dovish in its statement regarding the future of interest rate hikes.

    Earlier in the session the stock indices bent a little bit but did not break after the Euro broke sharply following an S&P Corp. downgrade of Spain’s debt. Although investors seem to be a little more cautious about holding long positions at current levels, they don’t seem as worried about the worsening situation in the Europe as they did on Tuesday. This could be because they feel a solution is close due to the on-going dialogue between Greece and the EU/IMF.

    Technically, the June E-mini S&P 500 main trend turned down on the daily chart when the market broke through the last main bottom at 1179.75. The lack of follow-through after breaking this price indicates that there were more buyers looking to enter than sellers looking to pressure the short-side. The key will be what traders do when 1196.75 to 1201.50 is tested. If the market is topping then sellers will step in and form a secondary lower top. If the market is going higher then it should easily blow through this retracement zone.

    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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