Thursday, March 3, 2011

Dow Jones Close Strongly Above The Mid Bollinger Bands Could Signal Upside Bias To Upper Bollinger Band.

U.S. stocks recorded their biggest intra-day gain in more than three months as a strong reading on employment (new unemployment claims unexpectedly fell to the lowest level since May 2008), the best non-manufacturing purchasing managers index (PMI) since August 2005.

Sentiment was also boosted by easing oil prices after talks of peace plan by Venezuela President Hugo Chavez to mediate rising tensions in Libya. A drop in the price of oil led to a dramatic reversal in the recent risk aversion trade.

Interestingly, as oil rebounded from session lows in afternoon action the stock rally barely faltered. The Dow Jones Industrial Average jumped 191.4 points, or 1.6%, to 12,258.20. The S&P 500 rallied 22.53 points, or 1.7%, to 1330.97.

U.S. Federal Reserve Chairman Ben S. Bernanke said an improvement in state and local government finances will depend on the rate of U.S. economic expansion. “If the economy continues to strengthen at about the pace projected by the Federal Reserve and many private forecasters, states and localities may start to get a little breathing space,” Bernanke said. Measures of risk in the market for state and local debt that rose earlier this year are now receding, he said.

Dow Jones Close Strongly Above The Mid Bollinger Bands Could Signal Upside Bias To Upper Bollinger Band.
DowJones04-03-2011


Source: StockCharts.com

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