After weeks of swinging from side to side, the major U.S stock indices bounced higher as traders and investors alike pulled money out of safe-haven assets and rushed back into riskier ones. The beginning of last week already signaled to traders that something promising was about to happen, as the S&P500, the broader market index, bounced off its 200 day moving average, after forming a tri-star doji pattern. (Please note that a tri-star doji is quite rare and will often signal a change in trend).
Good news from U.S companies helped to drive the indices forward, as names like Intel Corp., Google Inc. and Goldman Sachs Group, raised optimism on Wall Street, driving the major indices to close with weekly gains of about 7%. The increase in sentiment was immediately felt across the board as the Dollar index dropped at the start of the week, allowing carry trades and Dollar counterparts to snap back. The Dollar index finished the week on support, hanging on by a thread, as the counterparts jumped higher.
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