S&P 500 Pivots
The S&P 500 stayed above Thursday’s previous high of 1181.43 responding positively to Good Friday’s employment report. The market is just shy of breaking Dow 11,000 and should not have much resistance. Earnings season is approaching so expect anticipation to be high.
Today’s primary pivot point is 1184.63 so expect the S&P 500 to keep above the 1181 level as it is the convergence of the 144 Fibonacci moving average on the 5 minute chart as well as the 200 moving average. Thursday’s previous high as well as the 144 and 200 moving averages will provide support for the S&P 500.
The S&P trend on the daily chart has been consistently upward after breaking through the 1140 resistance level in early March. Expect the S&P 500 to go higher it doesn’t trade below the 1181 pivot level.
Commodities Analysis: Gold and Crude
Gold gain $6 to 1132 as gold imports are up in India ahead of the one million weddings planned between April and May. On the daily chart gold has been trending sideways since it reached a high of 1220 back in early December 2009.
Crude oil jumped $1.83 to $86.70. The dollar losing ground played apart in pushing the commodities sector higher. Previously the 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 sideways between the $80 and $81 however it has regained its footing reinforcing OPEC's decision of keeping oil output the same.
Forex Analysis: Dollar Vs Euro
The dollar is declining as the European manufacturing sector is picking up pace with the global economy. GE is investing 340 million Euros ($460 million) to expand European wind operations. Companies buying into foreign currencies for purchases and investing increase the demand towards that country’s currency. However the euro gains could be cut short as
Tuesday Economic Numbers
Yesterday the Federal Reserve met to discuss the interest rate charges on banks receiving emergency loans however made no announcement on the discount rate increase. Today the FOMC minutes will be announced today giving transparency to the decision they made three weeks ago on interest rates.
Previously the Fed pledged to keep federal funds rate near zero for ‘an extended period.’ Unless unemployment decreases then expect these rates to be appropriately set.
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