Reading Between The Lines

On April 26, 2012 by TradingDesk

The big FED’s FOMC announcement yesterday used a lot of words to say nothing new, and market watchers are still working this morning to read between the lines. After finishing with solid gains yesterday, most global equity markets are selling off today. The parade of negative economic news continues from Europe, and was joined by another increase in US jobless claims this morning, and a decline in the Chicago Fed’s business activity index. With 3 trading days left in the month, there’s not much more time to take advantage of the old adage to Sell by May, then go away.

Energy prices were knocked around all day by rumors that Iran was shelving its nuclear program, a mixed DOE report, and the FED’s statement, but ultimately followed stocks and drifted higher into the close. Products are moving fractionally higher this morning, back into the middle of their recent trading ranges. WTI remains in the red, still reeling from the glut of inventory at Cushing in yesterday’s report. Technical studies remain mixed, with a slight edge to the bears, but without a catalyst to provide further direction, its seems that we’ll be stuck in this range for a while.

 CLICK HERE for a PDF of this morning’s charts

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