Wednesday, December 2, 2009
Traders will be focusing on the U.S. ADP Report this morning. The report is expected to show that the pace of jobs loss in the U.S. is slowing, bringing the economy closer to
sustaining its current recovery. The early estimate is for a job loss of 150,000 versus a loss of 203,000 in October. A stronger than expected report will lead to an increase in risk appetite which
should pressure the Dollar and help to rally stock indices. Later this afternoon, traders will react to the Fed’s Beige Book.
An increase in demand for higher risk assets should send the stock indices higher. Chart watchers should note that the December E-mini S&P 500 is still holding the November top at
1112.25. A break-out over this level should send the index soaring to a possible test of major 50% resistance at 1122.00. A break back under 1102.25 will be the first sign of weakness. A close under
1089.50 will be bearish.
The rise in higher yielding assets pressured the Treasury markets yesterday with the March Treasury Bonds taking the hardest …
