The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited. S&P500 Futures Daily S&P 500 saw gains yesterday on the back of better than expected jobless claims and housing data, pushing the benchmark index to a 5 year high. With the current push, price managed to establish a firm hold above 1,465, which was threatening to go under at one point this week. A break below the 1,465 level would have caused panic, eroding confidence in the market. Hence bulls would be glad that the overall market remained positive about the US economy, which is certainly a good start for 2013.
This gain can be regarded as more significant than the ones seen back in the 1st week of 2013, as the rally back then was solely attributed to the resolution of Fiscal Cliff, does not necessarily reflect the true bullishness of market, with overreaction probably mixed into it. Current rally on the other hand is a show of strength and confidence in the US market, and more importantly, we’re trading higher than the highs after QE3 announcement, showing the true advancement we’re making in the US economy.
10Y T-Note Futures Weekly
10 yr T-Notes has also made significant headway, hinting at a break below 132.0. Should the analysis above be true, we should see bond prices falling as a confirmation in investor confidence. Breaking 132 is simply a start, and hopefully we will be able to see a longer bearish follow-through in 2013.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Originally posted here…
Posted in: Markets, Trading Ideas