Wednesday, January 13, 2010
U.S. equity markets are called steady to better this morning. The lack of follow-through to the downside following yesterday’s sell-off is triggering a short-covering retracement
rally. Earnings, bank fees and taxes are on the minds of traders today which could lead to limited gains. The March E-mini S&P 500 is likely to stall following a rally to 1137.75. Yesterday’s
break stopped inside of a short-term retracement zone at 1129.00 to 1124.50.
March Treasury Bonds are giving back some of Tuesday’s gains after testing a 50% price level at 116’28. Regaining this level could trigger a further rally to 117’14. On the downside,
look for a pull-back to 116’05. Talk of higher interest rates from Fed President Plosser and in the U.K. is pressuring fixed income instruments today.
February Gold is trading slightly better but in a narrow range. Overnight volatility in the Dollar has traders confused about the direction of this market. The chart indicates a move
to $1119.10 to $1108.80 is likely over the near-term. A rally today is likely to be short-covering. Look for new …
