The Dollar Weakens – Presents a Doji after a Hammer

Similar to previous sessions, Wall Street traded on light volume yesterday, finishing the day in positive territory. The S&P500 closed with a minor gain of 0.02%, while the Dow Jones Industrial Average closed up by 0.03%

Economic data had an intraday affect yesterday, as Chicago PMI exploded higher, showing that manufacturing activity in the Chicago region had expanded. The number increased to 60.0 from a previous 56.1. The number shocked economists, showing them that the economy is improving at a much faster pace than expected. It also helped to boost sentiment - some are now expecting production to pick up during the first part of 2010.

From a technical point of view the major averages continued to trade around prior levels, just off their highs. This time round the Technology sector led the indices higher, with a gain of 0.35%, while consumer discretionary weighed on the session, declining by -0.69%.

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