Daily Futures Commentary May 28, 2009

Thursday, May 28, 2009

June Treasury Bonds and June Treasury Notes were under tremendous pressure on Wednesday as new supply hit the market causing yields to soar higher. More downside pressure could hit these markets today as additional 10-Year Note supply gets auctioned. Investors are demanding higher yields because of the growing size of the government budget deficit. Will the supply/demand fundamentals continue to drive these futures instruments lower or will these technically oversold markets rebound?

Stock Indices continue to trade inside of a sizeable range. Buyers have been supporting these markets on dips, but dumping on the rallies. Aggressive traders are getting chopped up as the equity indices have retraced over the same prices several times during the week. Continue to trade the range until the market gives a clue as to which direction it wants to take. 875.00 is major support for the June E-mini S&P. This area has been tested several times during the past few weeks. Stops have to be building under this area but it is going to take a huge amount of selling and negative news to drive through this floor.

The U.S. Dollar is attempting …
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