Thursday, March 4, 2010
U.S. equity markets are trading flat to lower ahead of this morning’s weekly jobless claims report. In addition, investors seem to be taking a non-committal approach in front of
tomorrow’s U.S. Non-Farm Payrolls Report. The Forex markets indicate that investor sentiment is shifting back toward risk aversion which could pressure equity markets today. A downside break could be
led by the Dow and NASDAQ which posted closing price reversal tops yesterday.
Demand for lower yielding assets is helping to give June Treasury Bonds and June Treasury Notes a slight lift this morning. A rapid acceleration to the downside in the equity market
could lead to more upside pressure in the Treasuries. The key area to watch in the T-Bonds is 117’23. Regaining this area will be a sign of strength.
The stronger Dollar is helping to keep April Gold on the defensive. Currently this market is trading lower while sitting on a major 50% level at $1136.75. Bullish traders will try to
create support at this price in order to set up another rally to perhaps $1158.52. …
