May 28, 2010
Stocks Continue to Rise amid Increased Risk Appetite
U.S. equity markets are trading better overnight. The shift from concerns about the Euro Zone back to the recovery in the U.S. economy is helping to drive up demand for
U.S. stocks.
The June E-mini is currently testing its first upside objective at 1105.75. If investors can build a support base at this price, then look for the move to continue to
1122.00 over the near-term. A failure to hold 1105.75 sets up a possible retracement back to 1071.75.
U.S. equity markets are hitting a critical point on the charts this morning. If sellers show up on this rally, then there is a strong possibility that a new lower top
will form. This will indicate that the stock markets are entering a new bear market. The main trend is still down on the daily chart and won’t turn up until the June E-mini crosses the last swing top
at 1174.75.
Higher stock prices should keep the pressure on …
