Monday, March 8, 2010
U.S. equity markets are expected to open better this morning due to a pick-up in demand for higher yielding assets. Investors are also feeling more confident in the long side
following last Friday’s better than expected Non-Farm Payrolls Report. The lack of fresh major economic news until at least Thursday could keep the indices on course for further upside action. The
daily March E-mini S&P 500 chart indicates the possibility of a rally to 1156.00 by March 12th.
June Treasury Bonds are expected to be under pressure today. Traders are still adjusting positions following last Friday’s improved jobs news. Investors are factoring in the prospect
of an interest rate hike by the Fed before the end of the year. The daily chart suggests that a move to 116’04 is likely. Watch for a technical bounce on the first test of this level. Despite the
weaker Dollar, April Gold is trading lower. This market is having trouble attracting buyers at a 50% level at $1136.75. Liquidation by traders hoping for the demise of the Euro may be holding back
gains. …
