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Stocks Struggle to Eke Out another Gain

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Jul 15, 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 futures struggled a bit on Wednesday but were able to post their 7th consecutive gain. Stocks were expected to trade sharply higher on the heels of a strong earnings report from Intel but demand for equities faltered overnight due to concerns about European bank stress tests and today following a weak Retail Sales report. Late in the session, news that the Fed lowered its outlook for the economy weighed on the markets into the close. Despite the negative news, there were enough buyers in the market today to weather the storm. This was an indication that the majority of investors are still focusing on earnings rather than the economy. This could change, however, once investors assess the Fed Minutes.

    If today’s late session weakness is any indication, stocks may have trouble rallying from their current positions if investors begin to believe the Fed’s outlook for lower GDP and employment. If traders maintain their optimism because of earnings, then the reaction to the Fed may be delayed. Either way, expectations are for this rally to become labored which may be an indication that the bears are stepping up their activity.

    The best topping sign to look for at this time is a closing price reversal. This means that a new high for the week is necessary, followed by a lower close.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

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