Stock indexes in corrective mode following rally


Market Snapshot for October 26, 2011 (6:30 a.m. ET):

Closing Prices: DOW 12,208.55 (+339.51, +2.9%), S&P 500 1,284.59 (+42.59, +3.3%), NASDAQ 2,738.63 (+87.96, +3.4%), Nikkei 225 9,050.47 (+123.93, +1.39), DAX 6,332.04 (-5.80, -0.09%), FTSE 5,698.90 (-14.92, -0.26%)

OIL 92.41, GOLD 1,738.40, SILVER 35.42

EURO 1.4145, YEN 75.85, BRITISH POUND 1.6096, U.S. DOLLAR INDEX 75.23

EU Plan Pushes Euro to Multi-Week Highs

The EU has taken center stage this week as the region's leaders met to hash out plans to attempt to stabilize and improve financial conditions. The market was disappointed on Wednesday morning that an anticipated announcement had been delayed, but recovered into Wednesday afternoon. A deal was finally announced on Thursday that included increases in the EFSF (bailout) fund and agreements to cut Greece's debt obligations by 50%.

The index futures rallied strongly throughout premarket trade, leaving them exhausted ahead of Thursday's opening bell, but the bulls held their ground throughout the morning. The market corrected from the move by falling into a trading range throughout most of the morning with only a minor correction in price to 5 minute 20 period moving averages before moving higher once again in afternoon trade. The euro also benefited greatly from the news and experienced one of its best single-session moves of the year with a gain of 2.3% by the close.

Dow Jones Industrial Average (Figure 1)

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