Intraday Market Thoughts

Archived IMT (2009.06.02)

by Ashraf Laidi
Jun 2, 2009 13:05

By hitting new 5 month highs yesterday, US equities have broken the 2-month cycle of up and down trends prevailing since March 2008. Yesterdays close above the 200-day MA was the first since December 2007. Also key, is that equities have posted 3 monthly consecutive gains, which is the longest uninterrupted monthly rise since October-December 2001. A positive close in June would make it 4-straight monthly gains, which is the longest bear market rally since 1933. As these technical developments suggest less bearishness for equities, the foundation for the dollar is looking increasingly bleak.But do keep in mind that yesterday the VIX closed HIGHER despite a rally in equities, AUDUSD tests 0.82. EURUSD eyes $1.4380, with support climbing to $1.4170.


Latest IMTs