U.S. stock-index futures are called higher this morning. After a closing price reversal top on Friday, the December E-mini S&P 500 stands poised to challenge last Friday’s high at 1132.75, but first must take out a Fibonacci retracement level at 1128.00.
A failure to take out 1132.75 will mean the reversal pattern is still intact. Taking out 1117.00 will confirm the reversal top and set up a possible break to the 50% retracement price at 1103.00.
The catalyst behind the overnight strength is the news that Ireland may have quelled concern that it will need financial aid from the European Union.
Over the week-end Irish Finance Minister Brian Lenihan said the country won’t need financial aid from the European Union as it prepares to sell as much as 1.5 billion euros ($2 billion) in a bond auction this week.
On Friday, U.S. equity prices reversed course late in the session following a breakout rally on concern that Ireland may need international financial assistance. A report by Barclays PLC on Friday set off the late session break after it claimed that Ireland may need to accept external assistance if there are additional financial-sector losses or the economy worsens.
The Federal Open Market Committee meets on September 21. Look for the Fed to leave interest rates at historically low levels and for it to leave its Treasury Bond buyback program unchanged.
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