Monday, May 21, 2012

Is market psychology changing?

On Thursday it was more of the same trading with the emini s&p futures closing right around the value area we talked about yesterday. However, is it important to note that the initially positive trade from better than expected jobs data quickly faded. A reversal in the dollar put pressure on the s&p, oil, and gold. It seems that the market may be at a crossroads. If the jobs data on Friday is better than expected, then perhaps QE2 is off the table (putting a bid in the dollar). On the other hand if the jobs data is worse than expected, then the weak economy will become back into focus. The reaction to tomorrows jobs data will be very important to see if investor psychology is changing.



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