What happens in the market these days seems like setting a stage for a major rally. First, on Friday, the very bad unemployment data failed to push the indexes lower. Instead, there was quite a rally which some analysts called bargain hunting. Then, yesterday, the news about the new US administration investment into infrastructure pushed resource companies higher. Whether this chain of positive development persists in the future, remains to be seen. But, the conditions are there. The majority of people are now bearish and the news hardly affect the mood anymore. That should be the typical attitude at market lows. Which sets the stage for moving upwards. This is, obviously, the reason many miss the initial rally. The US and Australian markets seem to be quite well up from the lows reached only a couple of weeks ago.
Today we will see whether the rally will extend from the US into Australian market. The S&P 200 is currently at 3650 and the ASX is about to open somewhere around that number. Although the index went up to 3750 over night, it is to open near to where it closed yesterday during trading hours.
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