Daily Futures Commentary October 27, 2009

Tuesday, October 27, 2009

Treasury Auction Results Could Move Markets Later Today

December T-Bond and T-Notes traders are cautiously supporting prices in the pre-market in anticipation of the start of this week’s auction. The Treasury will be auctioning 2-Year Notes. Investors will be watching to see how much demand there will be for this debt. The size of the demand will set the interest rate. Traders won’t know the results until about 12:00 pm CDT. The release of these results should be a market mover. The charts indicate the T-Bonds are at retracement support at 117’18. The Ten-Year Notes are nearing support at 116’17. Resistance comes in at 117’27.

Equity traders will be watching housing, financial stocks and the state of the U.S. consumer for direction. Two reports, the Case-Shiller House Price Report and the U.S. Consumer Confidence Report come out at the same time today, 8 am CDT. The variable will be news out of Washington concerning the extension of the First-Time Buyer Credit Program. This news will be a market mover along with the auction results.

The December E-mini S&P 500 is nearing support at 1056.75 to 1047.00. The …
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