June 1, 2010
German President Resignation Weakens Global Equities
Global equity markets are trading lower following the surprise resignation of German President Horst Kohler. Although the markets are trading lower, so far the reaction
has been normal with no sign of a panic sell-off at this time. Traders seem to be taking some time to digest the news while studying its potential impact on the markets today.
Early this morning the June E-mini S&P 500 is testing the 50% level of the 1036.75 to 1106.75 range at 1071.75. A trade through this level sets up a test of the .618
level at 1063.50. A failure to hold the retracement zone will indicate that a test of the recent bottom at 1036.75 is likely.
The short-term range in the June E-mini NASDAQ is 1754.25 to 1874.25. This range creates a downside target today at 1814.25 to 1800.00. The June E-mini Dow is testing its
retracement level at 10017 to 9956.
Uncertainty is creating fear this morning and investors are adjusting to …
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