Tuesday, May 3, 2011

Daily Dow Jones Is Under Uncertainty Ahead With The Two Straight Dojis Formation, 04-05-2011

Wall Street outlook: Dow Jones ends flat after volatile trading.
Despite a better-than-expected March factory orders report, the Dow only inched up 1-pt after a volatile session as disappointing corporate earnings and a steep 2.2% plunge in oil prices weighed on the broader market.

Sentiment was also cautious amid fears of possible terrorist retaliations and ahead of key economic reports i.e. April ADP report/April ISM non-manufacturing (4 May) and April non-farm payrolls (6 May).

U.S. stocks dropped for a second day amid a waning in the earnings-led rally that had lifted markets over the past two weeks. In a session dominated by an obvious flight to safety trade commodities sank in the wake of India’s surprise 50bps interest rate increase and a near-8% plunge in silver prices as trading margins were lifted for the third time in eight days. The major averages did climb off their lows in the final hour helped by the S&P 500 holding 1,350 as well as wire reports discussing how a deal have been reached between Portugal and the International Monetary Fund /European Union on the terms of a bailout.

Portugal reached an agreement with officials preparing its European Union-led bailout that will provide as much as EUR78bn (US$116bn) in aid and allow more time to reduce the country’s budget deficit. The three-year plan set goals for a budget deficit of 5.9% of GDP this year, 4.5% in 2012 and 3.0% in 2013, Prime Minister Jose Socrates said. The government in Mar targeted a deficit of 4.6% of GDP this year, 3.0% in 2012 and 2.0% in 2013.

Daily Dow Jones Is Under Uncertainty Ahead With The Two Straight Dojis Formation.

Source: StockCharts.com

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