Tuesday, August 11, 2009

1178/ 1184 reisistance turn support, 1200 next resistance


Stocks could give back more gains this week as traders keep a wary eye on the strengthening dollar."I think we get a small pull back here, but I don't think the rally is finished," said John Roque, managing director with WJB Capital Group.The Fed starts a two-day meeting Tuesday, and there are just a few economic reports, including productivity and costs at 8:30 a.m., and wholesale trade at 10 a.m. The NFIB's small business survey is reported at 7:30 a.m."The stock market benefited greatly from weakness in the dollar. It would seem natural that if it were to rally, it would put pressure on stocks," said Cashin. The dollar staged an interesting intraday reversal Friday after better than expected jobs data, sparking a debate about whether the dollar is now going to trade along with perceived relative strengthening in the U.S. economy instead of against the idea of recovery.Traders were also watching the Chinese stock market, down for a fourth day and another metric for the global economic recovery.

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