Daily Futures Commentary January 19, 2010

Article Image

Tuesday, January 19, 2010

U.S. equity markets are trading overnight and are expected to open slightly above near-term support. The March E-mini S&P 500 broke an uptrending Gann angle at 1132.25 which has
held as support since November 27th. This is a sign of impending weakness. Short-term support is a retracement zone at 1129.00 to 1124.50. Once this zone is broken, the next downside targets will be
1105.00 and 1095.00. The fear of higher interest rates is helping to shift sentiment out of higher risk assets.

The short-term trend is up in the March Treasury Bonds, but the market appears to be stalling inside of a retracement zone at 116’28 to 117’14. Last night’s attempt to breakout to the
upside appears to be failing, setting up this market for a potential closing price reversal top. For a while, the strategy used by traders has been sell bonds and buy stocks, but recent action
suggests that this strategy may be shifting. Traders should be aware that it is possible that the threat of a rise in interest rates could pressure both equities and fixed income …

Read More …

Share the News | facebooktwittergoogle_plusredditlinkedin |

This post is over 2 years old. Sometimes images and links no longer work since they are from other sites. We have no control over these sites and we are sorry for this if it makes harder to understand the article.

Latest Articles

Click for a Random Article: [This Month] | [This Year] | [All Time]

Comments are closed.