May 17, 2010
Stocks Recover from Lows after Early Overnight Weakness
The plunging Euro and British Pound helped drive traders out of risky assets early Sunday night sending U.S. equity markets lower. Shortly before the U.S. Forex opening,
the recovery in both of these currencies from their lows has helped to push stocks higher.
Stocks took most of its cues from the Euro on Sunday night as this currency broke through the so-called “Lehman Brothers Low” at 1.2329. At the time this low was made in
2008, the world was going through a credit crisis. Nonetheless, a break through this level may lead to a psychological breakdown in the equities as it will mean that the global economy is well on its
way to repeating the same mistakes which triggered the start of the sell-off in late 2008 and early 2009.
The short-term main range in the June E-mini S&P 500 is 1056.00 to 1174.75. The retracement zone inside this range is 1115.50 to 1101.50. Last night’s break came
close to but did …
