Tuesday, March 2, 2010
Investor optimism over a resolution to the sovereign debt problem in Greece and improvements in the U.S. economy are helping to boost U.S. equity markets following a change in trend
to the upside on Monday. Traders expect the trend to continue today as the charts indicate very little resistance to the upside. The lack of major economic reports today indicates that traders are
likely to focus on any new developments coming out of Greece. The key to an early rally will be whether U.S. investors decide to chase the markets higher after a strong overnight gain. If buyers back
off, then look for an early retracement to the downside.
Treasury futures are trading lower as sovereign debt fears eased demand for lower yielding, lower risk assets. After reaching resistance at 118’24, the June Bonds may see a short-term
correction to 116’00 over the short-run.
The possibility of a weaker Dollar because of optimism that a deal will be reached between Greece and the European Union is helping to boost demand for higher risk assets, thereby
underpinning …
