Will Markets Continue Higher Today or Fall?

February 17th, 2010

Yesterday was very good for the over-sold markets. I mean we basically have told everyone since the HAMMER PATTERN that we would see a rebound in the markets. But now that we are here – will the market carry through onto higher prices or start to falter? On an intra-day chart I don’t see us getting much higher than the recent highs of early Feb.

The dollar fell as investors felt less of a need to stash their money in safer investments. Oil, gold and other commodities joined stocks as the beneficiaries of the market’s renewed confidence. And the stocks of energy and materials producers were among the day’s big winners.

European markets also rose following new plans by European Union leaders to push Greece to get its budget under control. European officials gave Greece one month to prove it can cut its deficits. Debt problems in European countries including Greece, Portugal and Spain have been a major factor behind weakness in global stock markets in recent weeks.

In the U.S., Kraft Foods Inc. and apparel retailer Abercrombie & Fitch reported earnings that beat expectations, while drugmaker Merck & Co. said profits jumped after the company bought its longtime partner Schering-Plough Corp.

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