Friday, December 18, 2009
A geopolitical event is helping to give March Crude Oil a boost overnight. It’s been reported that Iranian troops entered an Iraqi oilfield. This news triggered a short-covering rally
overnight while sending this market back above a key resistance price at 75.53. The first upside objective of this current rally is 77.85, followed by 78.09.
Global equity markets are rising overnight as traders increase demand for higher risk assets. The primary driver for this week’s weak trade in the equity markets has been aversion to
risky assets due to credit concerns in the Euro Zone. The downgrade of Greece’s credit rating fueled yesterday’s sell-off, but the lack of new bearish developments overnight has triggered renewed
demand for higher risk assets.
The key to today’s action will be how the March E-mini S&P 500 reacts following a test of 1101.75. If sellers step up at this price then look for the start of another test of
1090.00. Regaining this level could trigger further short-covering.
The rally in the March Treasury Bonds since the Fed announcement …
