U.S. stock markets are trading weaker at the midsession. A better than estimated housing report underpinned the equity markets before the opening, but a lower than expected consumer confidence number encouraged traders to sell stocks. Technical traders are noting that this last rally completed a .618 retracement of the first leg down from the top. This could be indicating that the next move down will exceed 1035.00.
Treasury futures initially broke following the report of better than expected housing numbers. This report was another sign that the housing market may be on its way to recovery. Traders sold off positions on the thought that better housing would lead to higher interest rates some time in the future. December T-Bonds and T-Notes bottomed this morning following the release of the lower than expected consumer confidence report. The charts indicate that the next rally should take the Bonds to 123-00.
The U.S. Dollar is trading better against most major currencies. This is another sign that traders may be looking to pare risk as the global economic recovery may not be as robust as previously thought. The December British Pound is trading better this morning. A short-covering rally has been triggered by technically oversold conditions and reports that U.K. Retail Sales reached their highest level in five months and U.K. GDP contracted by less than expected.
December Gold is under pressure this morning because of the stronger Dollar. This market is trying to establish support around $985.00. A failure to hold this level could send the gold to $978.00. Holding support and regaining $993.80 could trigger a short-covering rally back to $1005 or higher.
December Crude Oil is having a choppy day. This market has seen both gains and losses throughout the day session. Technical factors may be holding the market up because of oversold indicators. Fundamentally, a stronger Dollar and weaker equities should keep the pressure on crude oil. Longer-term traders are bearish because of the recent increase in inventories because of weak demand and high supply.
Treasury futures initially broke following the report of better than expected housing numbers. This report was another sign that the housing market may be on its way to recovery. Traders sold off positions on the thought that better housing would lead to higher interest rates some time in the future. December T-Bonds and T-Notes bottomed this morning following the release of the lower than expected consumer confidence report. The charts indicate that the next rally should take the Bonds to 123-00.
The U.S. Dollar is trading better against most major currencies. This is another sign that traders may be looking to pare risk as the global economic recovery may not be as robust as previously thought. The December British Pound is trading better this morning. A short-covering rally has been triggered by technically oversold conditions and reports that U.K. Retail Sales reached their highest level in five months and U.K. GDP contracted by less than expected.
December Gold is under pressure this morning because of the stronger Dollar. This market is trying to establish support around $985.00. A failure to hold this level could send the gold to $978.00. Holding support and regaining $993.80 could trigger a short-covering rally back to $1005 or higher.
December Crude Oil is having a choppy day. This market has seen both gains and losses throughout the day session. Technical factors may be holding the market up because of oversold indicators. Fundamentally, a stronger Dollar and weaker equities should keep the pressure on crude oil. Longer-term traders are bearish because of the recent increase in inventories because of weak demand and high supply.
