Thursday, January 28, 2010
Stock indices could rally today following yesterday’s closing price reversal bottom. A friendly Fed statement and an upbeat speech from Obama could be the catalyst behind this rally.
Investor confidence seems to have been restored which has once again generated interest in higher risk assets.
The March E-mini S&P 500 has formed a range between 1148.00 to 1078.50. This makes 1113.25 to 1121.50 a potential upside target. The charts are also indicating a possible rally to
1842.00 to 1855.50 in the March E-mini NASDAQ and to 10371 to 10445 in the March E-mini Dow.
Demand for higher yields is pressuring the March Treasury Bonds and March Treasury Notes overnight. Yesterday’s Fed report signals that it is getting closer to hiking interest rates.
The news that the Fed is going to end its quantitative easing program on schedule at the end of March could put upside pressure on yields. Tuesday’s closing price reversal top which started inside a
major retracement zone is helping to pressure the March Bonds. All indications are for a possible break …
