Early morning trading action in U.S. equity markets is suggesting that the current rally is running out of steam. This morning’s favorable U.S. Durable Goods Report along with the improved U.S. New Home Sales Report triggered a rally early in the session which was met by sellers.
The charts suggest that a break under 1020.00 in the September E-mini S&P 500 could trigger weakness to the old top at 1016.00. If this area fails to hold as support then look for this market to complete a 50% retracement to 1006.75.
September Treasury Bonds are holding up well due to the weakness in the equity markets. Traders are also feeling good about demand for this morning’s Treasury auction which is allegedly receiving good support from foreign central banks. Regaining a major 50% price at 120’02 indicates further upside potential.
The U.S. Dollar is trading better at the midsession. The September Euro erased early morning gains after U.S. economic reports came out better than expected. Traders keep shifting positions between strong Dollar and strong Euro depending on who they feel will set the pace for the global economic recovery.
The September British Pound remains under pressure following a change in trend to down on the daily chart. Traders are betting that the U.K. will lag the U.S. and Euro during the recovery. Lower oil prices and negative comments from a Bank of Canada official are helping to weaken the September Canadian Dollar.
December Gold is trading mixed today. Thin trading conditions are causing a whip-saw market. Without inflation, this market’s direction will be dictated by the U.S. Dollar. A strong rally by the Dollar into the close is likely to break gold late in the day.
December Crude Oil opened lower and accelerated to the downside following an increase of 200,000 barrels according to its weekly inventory report. Trader had been looking for a decline of 2.7 million barrels. The chart pattern suggests that a double-top is being formed.
The charts suggest that a break under 1020.00 in the September E-mini S&P 500 could trigger weakness to the old top at 1016.00. If this area fails to hold as support then look for this market to complete a 50% retracement to 1006.75.
September Treasury Bonds are holding up well due to the weakness in the equity markets. Traders are also feeling good about demand for this morning’s Treasury auction which is allegedly receiving good support from foreign central banks. Regaining a major 50% price at 120’02 indicates further upside potential.
The U.S. Dollar is trading better at the midsession. The September Euro erased early morning gains after U.S. economic reports came out better than expected. Traders keep shifting positions between strong Dollar and strong Euro depending on who they feel will set the pace for the global economic recovery.
The September British Pound remains under pressure following a change in trend to down on the daily chart. Traders are betting that the U.K. will lag the U.S. and Euro during the recovery. Lower oil prices and negative comments from a Bank of Canada official are helping to weaken the September Canadian Dollar.
December Gold is trading mixed today. Thin trading conditions are causing a whip-saw market. Without inflation, this market’s direction will be dictated by the U.S. Dollar. A strong rally by the Dollar into the close is likely to break gold late in the day.
December Crude Oil opened lower and accelerated to the downside following an increase of 200,000 barrels according to its weekly inventory report. Trader had been looking for a decline of 2.7 million barrels. The chart pattern suggests that a double-top is being formed.
