U.S. equity markets have stabilized at the mid session following a sharp sell-off early in the trading session. Selling pressure is coming from a weak financial sector as traders are cutting long positions following a huge loss by Bank of America and weaker earnings from General Electric. Investors are beginning to question the durability of the current rally given the fresh earnings news.
U.S. Treasury markets are trading higher as investors shift money from the risky stock market to the relative safety of the December Treasury Bonds and Treasury Notes. The recent rise in yields is also making Treasuries an attractive alternative investment. The December T-Bond chart suggests an acceleration to the upside following a breakout over 119’22.
The U.S. Dollar is trading higher at the midsession against most major currencies. The lone exception is the December British Pound which is posting strong gains because of the possibility the Bank of England may end its asset buyback program. News that Japanese investors placed more funds in U.S. investments in August is helping to drive the December Japanese Yen lower. A lower than expected CPI number is pressuring the December Canadian Dollar.
December Gold and Silver are trading higher. These moves come as a surprise because of the stronger Dollar. Technical traders expected to see a retracement in gold and silver to set up a secondary higher top. If these markets fail at the retracement zones then look for the start of another leg down. The first downside target for December Gold is $1028.80.
Weaker equity markets are pressuring December Crude Oil. Overbought conditions are also contributing to the weakness. The daily chart indicates the potential for a reversal top on a close under 78.08. Should this pattern take place, watch for a correction to 72.10 over the near-term.
U.S. Treasury markets are trading higher as investors shift money from the risky stock market to the relative safety of the December Treasury Bonds and Treasury Notes. The recent rise in yields is also making Treasuries an attractive alternative investment. The December T-Bond chart suggests an acceleration to the upside following a breakout over 119’22.
The U.S. Dollar is trading higher at the midsession against most major currencies. The lone exception is the December British Pound which is posting strong gains because of the possibility the Bank of England may end its asset buyback program. News that Japanese investors placed more funds in U.S. investments in August is helping to drive the December Japanese Yen lower. A lower than expected CPI number is pressuring the December Canadian Dollar.
December Gold and Silver are trading higher. These moves come as a surprise because of the stronger Dollar. Technical traders expected to see a retracement in gold and silver to set up a secondary higher top. If these markets fail at the retracement zones then look for the start of another leg down. The first downside target for December Gold is $1028.80.
Weaker equity markets are pressuring December Crude Oil. Overbought conditions are also contributing to the weakness. The daily chart indicates the potential for a reversal top on a close under 78.08. Should this pattern take place, watch for a correction to 72.10 over the near-term.
