EQUITY FUTURES TRADE IN VOLATILE SESSION AS POOR HOUSING DATA CONFLICTS WITH PROMISES OF BANKS PASSING STRESS TESTS TO CREATE A SESSION OF UNCERTAINTY.
U.S. Equities traded in a see-saw session which had the markets setting up to give back nearly all of Tuesday’s gains after a worse than expected report on existing home sales reignited negative sentiment for equities. As the markets failed to engage enough downward momentum to break recent support levels, volatility began to pick up and the markets ricocheted between gains and losses throughout the session. A strong rally and fall in the final hour of trading signified that the markets are looking for a foundation to based directional momentum. So far, it continued to elude traders and investors that appear unwilling to post any big bets on the next emerging trend.
Overall, it was the fate of banking shares which determined the directions of the major indices today. Banks swung between massive gains and losses as the markets hung on nearly every report from the government regarding the structure of the bailout plan and if it would leave shareholders with some level of value in the wake of some level of nationalization of U.S. financial institutions.
Overall outlook of the market remained cautious as the Russell Index, one of the broadest based indices of small to medium sized companies, lagged behind most of the others with regards to volatile upward swings. Energy and material companies rallied today after a bullish EIA report showed that builds in Crude oil were less than expected and gasoline demand appears to be nearly 2% higher than this time last year, signaling that refiners may experience better than expected profit margins going into the summer driving season. Material stocks gained on some cautious optimism for future global infrastructure stimulus.
Technically, March Dow futures continue to range trade, holding support above 7070. If the market manages to hold a close above 7260, look for possible upward momentum to build that could begin to fill in gap left from 7,600.
EQUITY RANGES
OPEN
HIGH
LOW
CLOSE
CHANGE
DJH9 (MARCH DOW)
7285
7390
7140
7228
-76
SPH9 (MARCH S&P)
766.00
779.40
751.20
761.50
-7.30
NDH9 (MAR NASDAQ)
1160.00
1183.50
1141.00
1154.00
-9.50
Prepared by Rich Roscelli & Paul Brittain.
Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities.
