May 13, 2010
U.S. Stock Markets Looking for a Catalyst
U.S. Stock Indices are trading flat this morning after a limited, rangebound overnight trade. The chart pattern suggests that this week’s rally may be running out of
steam after three straight sessions of higher-highs.
This morning’s U.S. Initial Claims Report may act as a catalyst for a pop in equity prices today but the primary concerns among investors remain the risk of contagion in
Europe and the possible slowdown in global economic growth.
Technically, the June E-mini S&P 500 has a possible upside target at 1190.75 but also faces exposure to a 50% of the recent rally to 1115.50. The old bottoms at
1171.00, 1176.75 and 1179.75 could prove to be strong resistance today. The first sign of weakness will be a break back under a .618 level at 1155.50.
The June E-mini NASDAQ has a wall of resistance at 1985.75 and 1989.50. A break under 1933.25 will be the first sign of weakness. The June E-mini Dow found resistance
…
