Update Daily Investment News

Daily Forex Technicals | Written by FXtechtrade
EUR/USD
Today's support: - 1.4017, 1.3988 and 1.3961(main), where correction is possible. Break would give 1.3944, where correction also may be. Then follows 1.3920. Break of the latter would result in 1.3903. If a strong impulse, we would see 1.3892. Continuation will give 1.3866.Today's resistance: - 1.4180 and 1.4223(main). Break would give 1.4254, where a correction is possible. Then goes 1.4276. Break of the latter would result in 1.4299. If a strong impulse, we'd see 1.4331. Continuation will give 1.4356 and 1.4400.
USD/JPY
Today's support: - 89.10, 88.66 and 88.22(main). Break would bring 88.07, where correction is possible. Then 87.76, where a correction may also happen. Break of the latter will give 87.53. If a strong impulse, we would see 87.31. Continuation would give 87.08. Today's resistance: - 90.47 and 90.81(main), where a correction may happen. Break would bring 90.90, where also a correction may be. Then 91.18. If a strong impulse, we would see 91.34. Continuation will give 91.78.
DOW JONES INDEX
Today's support: - 10209.37, 10190.57 and 10168,24(main), where a delay and correction may happen. Break of the latter will give 10155.70, where correction also can be. Then follows 10140.87. Be there a strong impulse, we would see 10119.30. Continuation will bring 10092.25 and 10068.76.Today's resistance: - 10350.24(main), where a delay and correction may happen. Break would bring 10374.40, where a correction may happen. Then follows 10728.70, where a delay and correction could also be. Be there a strong impulse, we'd see 10470.94. Continuation would bring 10496.30 and 10527.12.

20% to 25% Correction by May: Market Analyst
By: JeeYeon Park CNBC News Associate
Investors await the slew of corporate earnings results this week. What should they be expecting? Dan Cook, senior market analyst at IG Markets, shared his market insights.“There’s still a lot of confusion in the market. We’re looking at a pretty positive earnings season overall, but as we saw last week, it was basically ignored due to political conflicts and we’re likely to see more of that,” Cook told CNBC.

http://www.cnbc.com/id/35062099

Market Crash if US Policies Continue: Dick Bove
By: CNBC.com staff Some worry Washington actions may create a new bear market. But Dick Bove, financial strategist at Rochdale Securities, fears the worst: He warns that America's government may instigate a full-fledged market crash. Bove offered CNBC his insights — and named bank stocks that are still strong investments. "We all agree the market is driven by money. If the money supply increases, the money gets into the market and stock prices go up," Bove noted.

http://www.cnbc.com/id/35065219

Extra Reserves for China Banks Take Effect, Markets Hit
By: CNBC.com With Wires
China's central bank has told the banks that need to raise their reserve ratios to implement the change on Tuesday, banking sources said.As reported last week, the central bank told some banks to increase their reserve ratios by 0.5 percentage point. That comes into effect on Tuesday.No new banks have been slapped with fresh higher reserve requirement ratios, the sources said.Reuters reported last week that CITIC Bank, the country's seventh-largest bank, and Industrial and Commercial Bank of China, the top lender, had been instructed to raise their reserve ratios after excessive lending.

http://www.cnbc.com/id/35070681

Korea, Taiwan Stocks May Reverse Uptrend: Technical Analysis
(Bloomberg) -- Stock benchmarks in South Korea, Taiwan and Indonesia fell last week after rallying to new highs from their 2009 lows, a pattern that may signal a trend reversal for share prices, CLSA Asia-Pacific Markets said. The Kospi and Taiex indexes rose to their highs from the 2009 low on Jan. 19, before ending the week lower by 1 percent and 5.1 percent, respectively. The Jakarta Composite Index, which reached an intraday high on Jan. 20, also declined 1.4 percent last week.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=adGeDBASemAU

Euro May Fall to 7-Month Low Against Dollar: Technical Analysis
(Bloomberg) -- The euro may fall to a seven-month low of $1.38 should it close below so-called support at $1.4118, said Pak Lai Ng, a technical analyst at Forecast Pte in Singapore, citing trading patterns. Europe’s currency is likely to test the $1.4118 level in coming days because daily momentum charts such as the moving average convergence/divergence, or MACD, show a sell signal for the euro versus the dollar, Ng said. The support is a 38.2 percent retracement of the euro’s rise from its March low of $1.2457 to the November high of $1.5144, based on a series of numbers known as the Fibonacci sequence.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ah0tfmR.Gsqg

Dollar May Resume Fall, JPM Says: Technical Analysis
(Bloomberg) -- The dollar may resume its long-term decline because it failed to break through key resistance levels even after a two-month rally, JPMorgan Chase & Co. said.
The Dollar Index, which InterContinental Exchange Inc. uses to gauge the strength of the greenback against a basket of six currencies, needs to break through 79.02, a 38.2 percent retracement of its decline to a 15-month low of 74.17 in November from 86.871 in April, to “seriously question” the currency’s long-term slide, wrote Niall O’Connor, a technical strategist in New York.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aWLqkWakOgFA

Hang Seng Falling 10% Shows China Risks to Banks
(Bloomberg) -- The 10 percent drop in Hong Kong equities since November underscores the increasing threat to valuations as China curbs growth and the U.S. proposes limits on the banking industry. Financial firms and property developers led the Hang Seng Index down from a peak on Nov. 16 after China mandated higher loan reserves and U.S. President Barack Obama sought to bar banks from proprietary trading. The Hang Seng fell nine of the last 10 days into the first so-called correction among developed markets in 2010, after a 128 percent gain in lenders last year spurred the biggest advance in a decade. It decreased 0.9 percent to 20,416.13 as of 11:02 a.m. in Hong Kong today.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aRCLJIpY19XI

MSCI China Falls 10% From High, Enters Correction
(Bloomberg) -- The MSCI China Index fell more than 10 percent from last year’s high in November, dragging the country’s stocks into a so-called correction, on concern government measures to curb lending will derail growth. The MSCI China, which tracks 118 mostly Hong Kong-traded Chinese companies, declined 1.6 percent to 60.49 at 11:06 a.m. New York time. The measure has fallen 10 percent from the Nov. 17 peak of 67.26, the threshold that defines a so-called correction. The index gained 59 percent last year.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a1PZ2fZqd4jQ

Legg Mason’s Bill Miller Says 2010 Will Be Good Year for Stocks
(Bloomberg) -- Legg Mason Inc.’s Bill Miller said 2010 will be a good year for stocks and a “challenging” one for bonds. “After spending 10 years in the wilderness, high-quality U.S. large-capitalization stocks are cheap compared to bonds,” Miller said today in his quarterly letter to investors.Miller, known for beating the S&P 500 Index a record 15 straight years through 2005, trailed the U.S. market benchmark for the next three years. His Legg Mason Capital Management Value Trust fell 55 percent in 2008, while his Opportunity Trust fund dropped 65 percent. Both rebounded last year after Miller’s bet on an improving economy paid off.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aH9_M1BmyRWQ

Global Stocks ‘Vulnerable to Correction,’ Rogers Says
(Bloomberg) -- Global equities are “vulnerable to correction” after rallying from their March lows and as governments around the world withdraw stimulus measures, said investor Jim Rogers, author of “A Bull in China.” The MSCI World Index climbed 67 percent from a more than 13-year low on March 9 as governments boosted spending and central banks cut borrowing costs to pull the global economy out of its worst recession since World War II. The gauge has fallen 4.9 percent from a 16-month high on Jan. 14.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aIslcLyrGHUA

U.K. Stocks Not Overvalued in Spite of Rally, PwC Study Says
(Bloomberg) -- The U.K. stock market isn’t overvalued, although the FTSE 100 index gained more than 22 percent in 2009, according to research by PricewaterhouseCoopers LLP released today. Of the nine stock markets surveyed by Yael Selfin, PwC’s head of macro consulting, the German and Dutch markets were the most overvalued and Britain’s and Sweden’s the least, according to the study. That means Britain and Sweden are best placed of the world’s leading equity markets to cope with global market corrections, since they are trading close to “fair value,” the study said.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aykUnciy0v18