May 5, 2010
Stocks Nearly Unchanged after Volatile Overnight Action
U.S. stock markets are called slightly lower this morning after a choppy overnight trade. Today could be another day of risk reduction as traders are still being
influenced by a multitude of factors including Euro Zone sovereign debt issues, new financial market restrictions, the threat of international terrorism and possible criminal action against Goldman
Sachs. The range may be limited, however, as traders may begin to cut back on trading ahead of this Friday’s U.S. Non-Farm Payrolls Report.
Tuesday’s action in the June E-mini S&P 500 reaffirmed the main down trend while also confirming the weekly closing price reversal top. This pattern usually suggests
the start of a 2 to 3 week correction. Downside momentum could take this market back to 1134.00 over the near-term. Short-term oversold conditions could trigger a short-covering rally before the
downtrend resumes.
June Treasury Bonds are up overnight after soaring in a flight to safety rally on Tuesday. Money could leave the stock market once again if traders …
