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Dull Markets Will Often End With Fireworks

ByNicholas Santiago
Published 08/21/2012, 09:20 AM
Updated 07/09/2023, 06:31 AM
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This morning, the S&P 500 Index e-mini futures (ES-U2) are trading higher by 3.00 points to 1417.75 per contract. The small move higher in the stock futures comes as Spain held a successful bond auction. Who really knows who bought the Spanish debt?

Most likely it was the ECB or another central bank, but the markets does not seem to care. As long as interest rates do not increase the stock market moving institutions seem satisfied. The trading volume in the stock market is also very light at this time. Often when stock markets float higher on light volume it will become very difficult to sell. Unfortunately, when the volume does come back into this stock market it will most likely signal the end of the recent stock rally.

Right now, with such light volume in place it only takes a handful of leading stocks to keep the markets higher. Positive moves in leading stocks such as Apple Inc (NASDAQ:AAPL), J.P. Morgan Chase & Co (NYSE:JPM), Exxon Mobil Corp (NYSE:XOM), and Google Inc (NASDAQ:GOOG) can control all of the major stock indexes.

Last night, the Asian stock markets were mixed by the end of the session. The big winner last night in Asia was the Sensex Index (India) finishing higher by 1.10 percent. This tells us that the Indian ADR's could remain strong if the U.S. markets continue to rally. Leading Indian ADR's such as Tata Motors Ltd (NYSE:TTM), and Infosys Ltd (NASDAQ:INFY) could be in play today.

Below You May Find The Video.

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