June 9, 2010
Stocks Expected to Open Slightly Better; Treasury Auction Pressuring T-Bonds
U.S. stocks are expected to open slightly better this morning. The markets traded sideways-to-lower overnight, but shortly before the New York opening are challenging
yesterday’s high. Risk sentiment seems to be turning positive which should help increase demand for higher yielding assets today.
U.S. equity markets posted a strong recovery late in the trading session on Tuesday, boosted by a turnaround in oil stocks and commodities. Stocks were directionless most
of the day as traders digested commentary from Fed Chairman Bernanke and weighed risk concerns from Europe.
Technically the June E-mini S&P 500 posted a daily closing price reversal. The 1041.25 low was close to the recent bottom at 1036.75, making it appear on the charts
as if a secondary higher bottom may be forming. A trade through 1063.25 will confirm the reversal bottom and could trigger a short-covering rally to 1074.50 to 1082.25 over the next 2 to 3 days.
1045.00 will be a key pivot number until June …
