Markets are in Pause Mode, Waiting the Fedís Decision

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Markets are in Pause Mode, Waiting the Fedís Decision

Post  harpal1980 on Tue Aug 11, 2009 1:43 am

Investors pressed the sell button yesterday, preferring to take profits on recent gains. The major stock indices closed in negative territory after presenting a choppy session. After Fridayís interesting day, economic data was brushed aside due to its low priority status, allowing investors to focus on recent earning reports.

McDonaldís bounced higher throughout the session after reporting an additional increase in sales. The stock closed up by over 1%, but failed to have any major impact on the indices. The S&P 500 finished mildly lower, shredding 0.33%, while the Nasdaq closed with a loss of 0.56%.

Two things have been troubling investors over the last few weeks, preventing them from driving the markets higher: From a technical point of view the major indices are now trading around psychological resistance levels, ones that have crushed recent momentum. In addition, since June the indices have presented a phenomenal rally, failing to present any major pull back. This situation is preventing additional money from joining the rally as participants are now waiting for a deeper pull back, hoping to receive more comfortable entry points.

As stated on the video briefing a reasonable pullback would be classed as one that drops to any of the Fibonacci levels:



Read the full article at Dodjit.com

harpal1980

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