SubscribeDaily Futures Commentary October 16, 2009
October 16, 2009
Losses at Bank of America Fuels Equity Market Selloff
U.S. equity markets are tumbling this morning after Bank of America reported a loss and General Electric posted less than stellar results. Failed loans at Bank of America triggered the loss which served as a reminder that some U.S. consumers and businesses are having a hard time paying back debt.
Investors reacted to the news from the get-go this morning with heavy selling pressure. All three major indices face the danger of a weekly technical reversal top which could lead to more serious damage to the markets next week. Analysts have been calling for a sizeable correction for some time, and this morning’s bad earnings news could be the catalyst for the start of this correction.
A close under 1068.00 in the December E-mini S&P 500 will reverse the weekly chart to down. Traders should watch 9807 in the December E-mini Dow and 1725.50 in the December E-mini NASDAQ. These prices are very important today and may serve as intra-day support, but carry more weight at the close.
Treasury futures are reacting to the negative …
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