S&P 500 Pivot Points
On Tuesday March 23rd, Tradermongers mentioned that the 1167 was a major area of support level due to the convergence of Tuesday’s previous low and the 144 Fibonacci level on the 5 minute chart. On Wednesday March 24th primary pivot level is 1167 so the S&P 500 ended the day around and found support at 1167.
March 25th primary pivot level is at 1168. This level is also the convergence of the 8, 21, 55, 144 Fibonacci levels on the 5 minute chart. The S&P 500 should not go below Tuesday’s previous low of 1163 however there should be a thick level of support between 1167 and 1168. Today the S&P 500 should be trading above the 1167 and 1168 levels.
Gold and Crude Oil Analysis
Yesterday Gold fell 1.4% to $1089 as the strength of the dollar gained. Commodities also took a hit as crude oil fell 0.18 to 80.45 after inventory numbers were released. Crude oil inventories rose for the eighth straight week up 7.3 million barrels. Last week OPEC cartel announced that it will keep oil output ceiling unchanged as it will keep its profit from the falling dollar. Oil is currently trading between the $80 and $81 range compared to last week’s $82 indicating the price of oil has not fluctuated greatly reinforcing OPEC’s decision of keeping oil output the same.
Forex Analysis: Dollar Vs. Euro
As we expected yesterday Euro fell to an 11 month low as Fitch downgraded
Economic Numbers
Today weekly jobless claims and natural gas report are due however they will have little impact on the markets. Speakers Ben Bernanke and Tim Geithner will are expected to move the markets.
Ben Bernanke will testify in front of the House Committee on Financial Services about the Fed’s exit strategy from its emergency lending facilities. Expect the financial sector to take a beating while the bank reform bill draws closer to approval in Congress. Treasury Secretary Tim Geithner testifies in front of the House Appropriations Committee. Watch the XLF ETF to give market direction.
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