Super Fitness Health BlogUS Stock Market Action Remains Uncertain
Recent stock market action has continued to see equities trade within a very choppy sideways range. Such uncertainty did not offer any clues to the possible short term trend. In fact, uncertainty still dominates current market environment & this is not helping the bullish traders lift prices up.
November is generally a bullish month & a robust performer all round having said that, this year the trend & momentum are showing symptoms of weakness.
Having said that global equities surged about 2 percent and the euro rallied against the dollar in spread trading activity after an Italian vote on economic reforms eased fears that its debt burden would jeopardize the Eurozone’s future.
But the focus is shifting to Italy’s deficit. With borrowing costs soaring and 1.9 trillion euros in public debt, the country is too large to bail out.
US economic data on jobs and the trade balance was viewed as favourable, sending safe-haven debt much lower, but markets remained focused on Europe. New US claims for jobless benefits fell to their lowest level since early April and the trade deficit unexpectedly shrank in September, pointing to a slight improvement in the sluggish economy.
Looking in more detail at the Dow Futures market, right now the Dow 30 is trading at its up-side channel highs of 12190 & looking to hit the recent high around 12285 points. And according to a City Index trading report, “Should the start of this week build on the bullish momentum then the Dow Jones could possibly be on course to reach the up-side target price of 12350.
“Shorter-term price support comes in this week at 11730 & more importantly around the 11470-11475 area. Failure to make headway to the up-side might even see the Dow Jones index pull back towards 11345 should we see weakness grow.”
CFD Trading and Financial Spread Trading are leveraged investment formats that carry a high degree of risk. It is possible to incur losses that are greater than your initial stake or investment. If you are trading with Spread Trading and Contracts for Difference, you should ensure you only invest using funds that you can afford to lose; always ensure that you fully understand the risk. Financial Spread Trading and CFD Trading might not be suited to all classes of investor; obtain impartial trading guidance if necessary.
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