Tuesday, January 12, 2010
Global stock markets weakened overnight after Alcoa released mixed results following yesterday’s close. In addition, news that China may begin raising interest rates is pressuring
demand for higher yielding assets. Commodity related stocks may feel pressure today because of an expected drop in demand for raw materials. Bank stocks may also drag the markets lower because of a
proposed fee by the Obama administration on banks that received federal aid during the credit crisis. The charts indicate the March E-mini S&P 500 is set-up for a near-term break to 1129.00 over
the near-term.
March Treasury Bonds are expected to see buyers today following a pick-up in demand for safer assets. The current chart formation is potentially bullish because of the support base
that has been built. Watch for a sharp acceleration to the upside following a breakout over the last main top at 116’05.
February Gold is faltering overnight following a rally to $1151.30. This move completes a 50% retracement of the $1227.50 to $1075.20 range created from December 3rd to December 22nd.
The stronger Dollar …
