Mixed Thoughts on Wall Street, Forex Pairs at Crossroads

After dropping at the start of the session, the major U.S stock indices managed to find support and climb back into positive territory. Investors experienced a volatile session yesterday as sentiment quickly flip-sided due to Buffets new transportation deal and upbeat results from Ford and GM. The major indices closed the session with an average gain of 0.3%

In one of his largest acquisitions ever, the market guru, Warren Buffet purchased the railway company Burlington Northern Santa Fe for $100 per share. Even though Buffet already had 22.6% of the company’s shares, he decided to go forward and purchase the remaining 77.4% for a whopping $44 billion.

The auto industry also showed positive signs yesterday as Ford sales increased by 2.6% thanks to its new fuel efficient cars. General Motors sales increased by 4.7%. Even though the auto industry helped to boost yesterday’s session, one must note that the recent figures were influenced by the cash for clunkers program.

From a technical point of view, the transportation index, known as a market leader, showed an enormous turnaround and climbed higher throughout the session. When taking a glance at the chart below one can see the enormous bullish candle accompanied by high volume. Even though yesterday’s session is classed as a positive sign for a broader market continuation, resistance lies at key levels, which could prevent the market from immediately climbing higher.

http://www.dodjit.com/CmsItems/image...03-43%20AM.png

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