Friday, March 26, 2010
U.S. Equity Markets firm after EU agrees on Financial Aid Package
U.S. stock markets are trading higher after the European Union, led by France and Germany, agreed on a bailout plan to help Greece. The news spread quickly throughout the equity
markets as traders covered short positions initiated after Thursday reversal to the downside. The early reaction to the upside could set the tone for the day as it may be an indication that traders
will be looking for risk today, now that the fear of a breakdown in the Euro has been abated somewhat.
June Treasury Bonds are trading higher and inside of yesterday’s range. Overnight this market found support at a .618 retracement level at 115’06. Further selling pressure could force
a challenge of an old main bottom at 114’15. Yields have risen quite a bit this week because of the increased supply of government debt hitting the markets. Not only is the government looking to
borrow, but corporations have also begun to look for investors. This increase in competition for debt is encouraging the investor …
