By Nicholas Santiago on July 7th, 2010 10:04am Eastern Time
As we all know the major stock market indexes have been under severe pressure since late April 2010. Many traders and investors are are screaming about the so called “death cross” and a break of a major head and shoulders top pattern on the daily chart. Both signals on the charts are extremely bearish and will point to much lower prices ahead. However, often when everyone is looking at the same thing and a pattern becomes so widely publicized the move will rarely play out as expected. Many traders and investors were expecting the major market indexes to roll over yesterday into the close and as we all know by now they seemed to hold up staging a late day rally.
This morning the always important U.S. Dollar Index is trading flat helping to inflate the major stock indexes such as the SPDR Dow Jones Industrial Average (NYSE:DIA), and the Powershares QQQQ Trust (NASDAQ:QQQQ). It is also important to remember at this time that the Shanghai Index has bounced over the past several days and this will generally help the other global markets. The European markets are trading flat today as they will usually take the lead from the U.S. markets even though they open much earlier for trading. The Euro currency is trading slightly lower today and that is generally a negative for the global markets. Today the Currencyshares Euro Trust (NYSE:FXE) is trading lower by 0.17 to $125.62. The FXE will have some intra-day support at $125.41.
This morning the major markets indexes are trading slightly positive. All markets around the world remain on very fragile ground at this time. There has been a ton of technical damage done on the charts since the late April decline. All in all at his time the market lives to fight another day.
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