Day Trading Economic News Analysis: March 30, 2010

S&P 500 Pivots

The S&P 500 is reaching highs not seen since September 2008. Yesterday the S&P 500 reached 1173.22 just shy of Friday’s 1174 high and above the 1167 pivot level.

Expect resistance between 1173 and 1174 levels and support at 1167. On March 25^th primary pivot level was at 1168. This level was also the convergence of the 8, 21, 55, 144 Fibonacci levels on the 5 minute chart. There should be a thick level of support between 1167 and 1168. Today’s primary pivot is 1172 so expect the market to go higher if it trades above the 1172 and 1174 levels.

Gold and Crude Analysis

Gold gained for the third straight session as it slowly regains the losses from last Wednesday’s $15 decline. Gold imports are up in India ahead of the one million weddings planned between April and May. Crude became cheaper for other currencies as the dollar fell raising the price of crude to $82.39 up $2.17. The dollar lost ground yesterday also played apart in pushing the commodities sector higher.

Last week OPEC cartel announced that it will keep oil output ceiling unchanged as it will keep its profit from the falling dollar. Oil was currently trading between the $80 and $81 however it has regained its footing from the previous week of $82 reinforcing OPEC's decision of keeping oil output the same.

Forex Analysis: Dollar Vs Euro

The euro rose from a 10-month low against the dollar as the International Monetary Fund would dictate terms of Greece assistance. Greece raised 5 Billion Euros in 7-year state bond offering at the interest rate of 5.9%. These events pushed the confidence level of the euro higher. Last week the euro pushed lower due to Fitch downgrading Portugal’s credit rating and Greece was seeking the aid of the International Monetary Fund, which didn’t have a rescue plan in place to solve the debt crisis.

Economic Numbers

Yesterday personal spending increased 0.3% however personal income was flat in February. Today’s consumer confidence report may give investors and traders a heads up on Friday’s employment situation report.

This week is a short trading week due to Good Friday as we move into April. Expect some market activity as we more in April tax season. April 1^st is a major economic news day as it brings Motor Vehicle Sales, ISM Manufacturing Index, and Construction Spending numbers prior to Good Friday.

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