Markets had a down day yesterday, not surprising after the strong performance experienced lately. The Canadian Dollar has also been on a tear, and also pulled back slightly yesterday. This morning the Bank of Canada (BOC) left the benchmark rate at the record low of ¼%, reiterating their desire to keep interest rates low into 2010.
The Canadian Government and the BOC are concerned that rapid rise in the Canadian Dollar will hamper economic recovery in Canada. The ECB kept its key interest rate at 1% and the Bank of England (BOE) maintained their ¼% rate. While the long end of the yield curve is creeping up, most governments and central banks believe the “green shoots” of economic recovery are not strong enough, nor is the threat of inflation great enough to raise rates at this time.
Futures this morning are positive and the DAX is positive, indicating a positive open. The market condition scans are neutral indicating no strong directional bias. The market bias indicators are also neutral as the sell-off yesterday satisfied the statistical bias.
| Index | Change | %Change | Level | Phase |
| TSX | -298.67 | -2.82% | 10290.12 | Bullish |
| DJIA | -65.59 | -0.75% | 8675.28 | Recovery |
| Nasdaq | -10.88 | -0.59% | 1825.92 | Bullish |
| SP 500 | -12.98 | -1.37% | 931.76 | Accumulation |
| Russell 2000 | -3.92 | -0.74% | 522.71 | Accumulation |
| NYSE | -148.97 | -2.41% | 6033.90 | Accumulation |
Source: Telechart
Short Term market outlook:
Bias: Scans showing a neutral bias
Energy: weak
Primary Trend: sideways
| Sector | Phase |
| Consumer Staples | Recovery |
| Healthcare | Recovery |
| Technology | Bullish |
| Utilities | Recovery |
| Energy | Accumulation |
| Financials | Recovery |
| Industrials | Recovery |
| Materials | Recovery |
| Consumer Discretionary | Recovery |
Source: Telechart
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