Richard Suttmeier is the Chief Market Strategist at
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September 22, 2010 – The FOMC Downgrades the US Economy, Stocks Rise
The 10-Year US Treasury yield tested my monthly pivot at 2.562 this morning on Fed inducedrisk aversion. Gold trades to another all time high at $1295.8 this morning with a daily riskylevel at $1296.7. Crude oil is between monthly and annual pivots at $74.45 and $77.05. The euromoves above its 200-day simple moving average at 1.3218 for the first time since January 19
,and approached it’s August 6
high at 1.3334. The Dow remains extremely overbought on itsdaily chart but grinds higher on its journey towards my annual pivot at 11,235 by Election Day.The FOMC downgrades the US economy, but Housing Starts rise by 10.5% unexpectedly. “TheGreat Credit Crunch” that began in March 2007 continues.10-Year Note
– (2.596) Daily, annual and annual value levels are 2.647, 2.813 2.999 with a monthlypivot at 2.562, and quarterly, weekly and semiannual risky levels at 2.495, 2.487 and 2.249.
Courtesy of Thomson / Reuters