European countries are being Downgraded, NZD/USD Jumps

After a choppy session, U.S stock traders decided to push the major indices higher towards the closing bell. Most of the trading day, the indices moved back and forth across their opening mark ,as downgrades and speculation of a deeper correction weighed on sentiment. The European markets experienced a negative session as Standard as Standard & Poor’s Ratings Services lowered Spain’s outlook on its debt to negative, one day after Fitch Ratings downgraded five Greek banks, raising worries about further debt grade reductions in additional European countries.

Furthermore, back in the U.S, Timothy Geithner addressed House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid, saying that the Obama administration does intend to reduce the amount of money it is using to bailout the economy, but wants to extend the TARP program. According to the Los Angeles Times Business, Treasury Secretary Timothy F.Geithner triggered the near-automatic extension of the $700 billion Tarp until Oct.3, 2010. In addition President Obama took the stage, giving a speech about the current situation. The president commented on the Job situation, expressing his joy about the recent numbers, but wasn’t shy to state that the U.S economy is still in for hard times.

From a technical point of view the S&P500 found support on recent critical levels. As shown in yesterday’s report, the index is now trading above support of 1090 points, within a minor range. The index closed with a 0.37% gain, while the Nasdaq climbed by 0.96%.

This time round, the leading sector of the day was Materials, closing with a 1.25% gain. Energy and Consumer Discretionary finished the session flat.

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S&P500 Daily Chart
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