June 3. 2010
Increased Risk Appetite; Position Squaring Boost Equities
U.S. equities are called higher this morning after posting a strong gain on Wednesday and a follow-thorough rally last night. The stable Euro is contributing to the rally
along with position squaring ahead of Friday’s U.S. Employment Report. In addition, traders seem to be getting a little more optimistic that the global economic recovery is getting back on track
based on fairly decent U.S. economic numbers.
On Wednesday, a better than expected U.S. home sales report helped drive stock prices higher. Traders took advantage of the thin trading conditions to drive the three
major indices higher after failing to follow-through to the downside following Tuesday’s sharp sell-off.
The June E-mini found support earlier in the week following a test of a minor 50% retracement level at 1071.75 and is now in a position to test a major 50% price level at
1105.75 and last week’s high at 1106.75.
Watch for an acceleration to the upside following a breakout through …
