US Equity Markets Break Out to Highest Levels In Months

On December 19, 2012 by TradingDesk

US equity markets broke out to their highest levels in over 2 months yesterday, and the EUR/USD currency pairing is at its highest level since May, largely attributed to optimism that the budget drama in Washington will be solved before mandatory tax increases and spending cuts take place Jan. 1. Energy prices had shrugged off the rallies for most of the past week, but have now jumped on the bandwagon and are testing upside resistance in an attempt to end the year on a strong note. As we stand at the moment, RBOB is up 3 cents, and HO is up 10 for the year, which means we essentially spent the past year going nowhere fast. Most notable however, is that WTI is down $10/barrel this year, proving that our products are increasingly driven by international markets.

The weekly DOE report will be out at 9:30. After several weeks of builds in crude stocks, it is largely expected that we will see a substantial draw this week as refiners begin to hold off imports to avoid year-end property taxes. With the light volume of trade taking place, the report could certainly cause a spike in volatility today, although for now it seems that energy prices will be dictated by the negotiations in DC.

CLICK HERE for a PDF of today’s chart

Comments are closed.