Markets Pop Before The Bell

This morning, the S&P 500 Index e-mini futures (ES-U2) are trading higher by 6.00 points to 1408.50 per contract. Traders and investors are cheering the markets higher this morning after Greece held a successful €4.063 bond auction. Market participants also seem to be reacting favorably to the U.S. economic data released at 8:30 am EST. All of this positive U.S. Data makes a near term quantitative easing by the Federal Reserve less likely. The bottom line, if the U.S. Dollar Index (DX-U2) starts to rally higher this small move higher in stocks could come to an abrupt end. The U.S. Dollar Index is still the most important chart that any trader can follow. As you should know by now, the stock market indexes around the world continue to trade inverse to the U.S. Dollar.

Last night, the leading Asian stock indexes all traded higher. The important Shanghai Index (China) finished higher by just 0.30 percent. This tells us that the Chinese ADR’s could be vulnerable to declines if the U.S. markets are weak. Leading stocks such as China Mobile Ltd. (ADR) (NYSE:CHL), SINA Corporation (NASDAQ:SINA),, Inc (NASDAQ:BIDU), and Inc (NASDAQ:SOHU) could all be very volatile this week.

About Nicholas Santiago 575 Articles


Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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