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31 Dec 2013
S&P 500 moving sideways in very light trade; technical target remains 1861
FXstreet.com (Barcelona) - S&P 500 futures are hugging the flat line early on Tuesday as most large traders are now in full vacation mode until at least Thursday and likely even until Monday.
Charts remain bullish – especially with what could be a persistent low rate / low DXY environment
Monday’s release of weaker-than-expected Pending Home Sales data from the US sent the yield on the 10-year US Treasury Note lower – taking the US Dollar lower along with it. This could just be a temporary phenomenon, but it will certainly be worth watching to see if the Fed remains true to their tapering plans if the data flow starts to sour in the US. Stocks hardly budged Monday despite the movement in the fixed income arena – symptomatic of the skeleton crews at work on the global trading floors. However, come Monday when everyone returns, you can bet the keys to watch short-term will be the behavior of interest rates and the greenback in the US in reaction to incoming data. If the US remains in a low rate / low DXY environment, will stocks applaud that or show traders’ disapproval by dropping? All evidence thus far is that the latter scenario will come to fruition.
Technical outlook for the S&P 500 futures
Technicians say the next projected target on the upside for S&P futures comes in at 1861 (from 1835 early Tuesday). The sideways action over the last couple of sessions is serving to work off the overbought condition that existed previously. Support on any more significant pullback comes in at the 1800 – 1805 level.
Charts remain bullish – especially with what could be a persistent low rate / low DXY environment
Monday’s release of weaker-than-expected Pending Home Sales data from the US sent the yield on the 10-year US Treasury Note lower – taking the US Dollar lower along with it. This could just be a temporary phenomenon, but it will certainly be worth watching to see if the Fed remains true to their tapering plans if the data flow starts to sour in the US. Stocks hardly budged Monday despite the movement in the fixed income arena – symptomatic of the skeleton crews at work on the global trading floors. However, come Monday when everyone returns, you can bet the keys to watch short-term will be the behavior of interest rates and the greenback in the US in reaction to incoming data. If the US remains in a low rate / low DXY environment, will stocks applaud that or show traders’ disapproval by dropping? All evidence thus far is that the latter scenario will come to fruition.
Technical outlook for the S&P 500 futures
Technicians say the next projected target on the upside for S&P futures comes in at 1861 (from 1835 early Tuesday). The sideways action over the last couple of sessions is serving to work off the overbought condition that existed previously. Support on any more significant pullback comes in at the 1800 – 1805 level.