US Stock Analysis (2013-05-22)
| Crude Oil | |||
| Previous Day Range | High: 97.20 | Low: 95.70 | Close: 95.95 |
| Technical Chart | Resistance R-2: 97.78 R-1: 96.87 |
Support S-1: 95.37 S-2: 94.78 |
Forecast High: 96.87 Low : 95.37 |
| The light sweet crude market initially fell during the session on Monday, but as you can see the $95.20 area held as support, propelling prices higher as the market claimed towards the $97.00 region. This area has been resistive previously, but it now looks like we’re gaining enough momentum to perhaps try to breakout and above. We still see the $98.00 level as being overly resistive, and as a result this could be a very difficult fight that we are about to witness. Going higher, the $99.00 level looks very resistive as well, and as a result anybody who is going long of this market will have to be extraordinarily resilient in their beliefs of a higher oil markets overall. With this being said, we are bit hesitant to go along at this point although we certainly can make the argument for it based upon the charts by themselves. The real question then becomes whether or not there are enough people out there needing oil for prices to continue to rise overall. We are entering the historically strong “driving season” in the United States, so perhaps this is in anticipation of higher gas prices, which only drag oil prices up with them. Nonetheless, it should also be stated that quite often that rally fades very quickly once we get into the month of June. All things being equal, we see easier trades out there. |
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| SPI | |||
| Previous Day Range | High: 1673.25 | Low: 1660.00 | Close: 1666.00 |
| Technical Chart | Resistance R-2:1679.67 R-1:1672.83 |
Support S-1:1659.58 S-2:1653.17 |
Forecast High:1672.83 Low:1659.58 |
| The June E-mini S&P 500 is trading flat overnight as concerns about a correction are weighing on investors’ minds. On Monday, the market finished little changed after reaching a new all-time high. For the first time in a while, investors cited the flurry of acquisitions for the early strength after trading higher most of the year on Fed liquidity. Today could be a slow day in terms of news and economic activity which means the focus may shift to the comments from a few Fed members. On Monday, Chicago Fed President Charles Evans said the central bank could keep up its current level of bond-buying stimulus, but could end it abruptly in the fall if by then it was sure that the labor market was on solid footing. Investors may also decide to head to the sidelines today ahead of Fed Chairman Bernanke’s testimony before a congressional committee on Wednesday. This could lead to some light selling pressure as investors pare positions before Bernanke speaks |
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| NDI | |||
| Previous Day Range | High: 3036.75 | Low: 3010.00 | Close: 3022.00 |
| Technical Chart | Resistance R-2:3049.67 R-1:3035.83 |
Support S-1:3009.08 S-2:2996.17 |
Forecast High:3035.83 Low:3009.08 |
| The market appears overbought, but may continue to become more overbought before reversing. Look for some price weakness before taking any bearish positions based on this indicator The market is EXTREMELY BULLISH. Everything in this indicator is pointing to higher prices: the fast average is above the slow average; the fast average is on an upward slope from the previous bar; the slow average is on an upward slope from the previous bar; and price is above the fast average and the slow average |
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| DJI | |||
| Previous Day Range | High: 15414 | Low: 15298 | Close: 15356 |
| Technical Chart | Resistance R-2:15472 R-1:15414 |
Support S-1:15298 S-2:15240 |
Forecast High:15414 Low :15298 |
| The June E-mini Dow Jones Industrial Average is trading flat shortly ahead of the U.S. cash market opening. Without any major economic reports today, trading may be light as investors await Fed Chairman Bernanke’s testimony before a congressional committee on Wednesday. Investors will be looking for comments regarding if and when the Fed will begin slowing down its massive asset-buying program. Since the Fed began this program, the market has soared. Now that it appears the Fed’s buying spree is nearing the beginning of the end, investors may begin to get nervous as uncertainty over the continuation of the rally sets in. |
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| Gold | |||
| Previous Day Range | High: 1401.53 | Low: 1360.05 | Close: 1375.59 |
| Technical Chart | Resistance R-2:1420.54 R-1:1398.06 |
Support S-1:1356.58 S-2:1337.58 |
Forecast High: 1398.06 Low: 1356.58 |
| The XAU/USD pair closed yesterday's session higher after seven consecutive days of losses as investors took some of profit off the table prior to the release of the Federal Open Market Committee meeting minutes. The Federal Reserve will release minutes from its May 1 policy meeting on Wednesday. On the same day, Fed Chairman Ben Bernanke will testify before the Joint Economic Committee about the country's economic outlook. |
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