The Markets Are Tense Ahead Of Economic Data

View previous topic View next topic Go down

The Markets Are Tense Ahead Of Economic Data

Post  harpal1980 on Tue Aug 25, 2009 2:08 am

Bernanke’s encouraging words didn’t have the same bullish affect yesterday, as investors cashed in on recent gains. The S&P500 jumped higher at the start of the session, but quickly lost its steam, closing with a mere loss of -0.05%. The U.S government’s recent stimulus plan for the auto industry, “cash for clunkers”, came to an end yesterday affecting auto stocks and having a mild affect on the intraday session. Ford dropped by 4.26%, while Daimler finished with a loss of -1.97%.

One must note that the cash for clunkers plan helped the auto industry and their stocks as it allowed car owners to trade in their old, less fuel-efficient cars in exchange for more efficient ones. Many investors are now waiting to see whether the sector can now hold up on simple supply and demand.
From a technical point of view the S&P500 managed to hold around recent break-out levels after a four day rally. When observing the chart more thoroughly one can see that yesterday’s candlestick presented a bearish shooting start like candle, one that could lead to further consolidation around current levels. Even though economic data could have a positive impact on the markets today a slight retracement wouldn’t be surprising, especially after last week’s rally.



Read the full article at Dodjit.com

harpal1980

Posts : 106
Join date : 2009-06-19
Age : 36
Location : India

View user profile http://www.dodjit.com

Back to top Go down

View previous topic View next topic Back to top

- Similar topics

 
Permissions in this forum:
You cannot reply to topics in this forum