U.S. equity markets are called higher after a strong turnaround on Friday. The lack of any major economic events and calmer conditions in the market regarding European debt issues is helping to drive up demand for more risky assets. Thin trading conditions means the possibility of violent swings.
U.S. Equity markets treaded water most of the session after a firm opening. Once again a gap-higher opening during the day session in the stock indices failed to attract strong buying interest. This was no surprise, however, as traders have backed away many times from chasing this market during its nine-month rally.
Equities Posting Modest Recovery; Treasury to Auction 10-Year Debt
U.S. stock index futures are trading better overnight after the inability to follow-through to the downside following yesterday’s sell-off triggered a short-covering rally. The lack of fresh news regarding debt issues in Dubai and Greece is also encouraging traders to take on more risk.
Lower Demand for Higher Risk Assets Pressures Equities
U.S. equity markets are called lower this morning following sell-off in Asia and Europe. The stronger Dollar is leading some investors to pare positions. Traders are trying to protect profits at the end of the year as chart patterns suggest there is more downside than upside potential at current levels.
Equity futures traded inside of last Friday’s range before finishing lower for the day. The mixed Dollar helped trigger a two-sided trade. The daily December E-mini S&P 500 held support at 1098.50 to 1093.50. The December E-mini NASDAQ has support at 1779.00 to 1770.25. A sell-off today could send the December E-mini Dow down to a retracement zone at 10357 to 10321.