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Stocks Waver after Steep Drop in U.S. Pending Home Sales

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Jan 6, 2010.

  1. futuretrends24

    futuretrends24 New Member

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

    After two days of greater demand for higher risk assets drove stock prices higher, U.S. equity markets wavered most of the day following a steep drop in pending home sales. At the end of the day, the March E-mini S&P 500 managed to close higher, but the March E-mini NASDAQ and March E-mini Dow did not fair so well.

    Technically, the closing price reversal top formed in the NASDAQ could trigger the start of a 2 to 3 day short-term correction. The inability of the Dow to make a new move high along with the other two indices indicates a possible developing divergence in the indices. This too may be an indication of a short-term top.

    Upbeat manufacturing reports out of China and the U.S. earlier in the week have helped to buoy stock prices, but investors seem a little reluctant to get too aggressive on the long side ahead of service and unemployment reports later this week. Usually during the first week in January, institutions and mutual funds flood the market with cash, but have been noticeably absent this year because of the late reporting of U.S. Non-Farm Payrolls.

    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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