Home > Uncategorized > Weekly Overview: 2010/02/17: Equities Up on Europe “Delay-And-Pray” Greek ‘Plan’, and Positive Economic Data

Weekly Overview: 2010/02/17: Equities Up on Europe “Delay-And-Pray” Greek ‘Plan’, and Positive Economic Data

▪ While that could be seen as typical bureaucratic stalling, in this case there are some significant issues surrounding Greek ability and desire to implement austerity measures. As we have noted previous, this also leaves us back in 1970s-style ‘politico’-economic markets, where breaking political stories seem to have at least as much impact on market psychology as the ultimate economic effects. And nowhere is that more prominent than in the weather-delayed developments in the US, where attempts at bipartisanship will likely founder on the shoals of political expediency as well as honest differences in philosophy and practice between parties.

▪ Of course, that leaves us with significantly technical markets once again, as only their own assessments are meaningful indications of how price trends are likely to unfold. That much is apparent from the equities positive reaction to the removal of negative psychology in the wake of the Greek (and general European) debt crisis abating for now.

▪ While we will have more to say on that in tomorrow’s more extensive update, for now a quick review of the technical trend aspects seems more so in order. In the first instance, in spite of this week’s equities strength, quite a bit of the analysis remains very similar to our perspectives and levels in last Friday’s TrendView BRIEF UPDATE. That includes the  March S&P 500 future rally from interim 1,050-42 support finally surmounting previously failed 1,080-75 support, which leaves the door open to a test of the low 1,100 area. That has a Tolerance into 1,110,…

▪ However, govvies did not seem to be too impressed with the equities strength, as the March T-note push up above its 117-16/-24 area has held that area on its pullback after extending its rally for a test of the high end of its 118-16-119-00 resistance. And in spite of fears US Dollar Index will revert to a bear, recent pullbacks have held no worse than the low end of its substantial .7950-.8000 interim resistance after its recent push above it.

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