Day Trading Economic News Analysis: March 29, 2010
S&P 500 Pivots
On Friday the S&P 500 rose to a daily high of 1174 before falling back to the 1167 support level. The 1167 is a major technical level for the S&P 500 due to the convergence of Fibonacci moving averages and pivot levels.
Today’s primary pivot level is 1167.33 so expect the market to trade upward above this level and trend downward below this level. Expect resistance between 1173 and 1174 levels and support between 1161 and 1160 due previous day’s highs and lows and pivot levels.
Gold and Crude Oil Analysis
On Friday Gold gained $6 on top $3 it gained on Thursday’s trading however it is still below the losses suffered on Wednesday when it fell $15 as the strength of the dollar gained. Crude oil gained 0.68 finishing at 80.68.
Oil is currently trading between the $80 and $81 compared to the previous week of $82 indicating the price of oil has not fluctuated greatly reinforcing OPEC’s decision of keeping oil output the same.
Lack of a real solution to the debt crisis in Greece and Portugal as well as a boost in key interest rates in India may lead to diminishing global demand of oil.
Forex Analysis: Dollar Vs. Euro
The Euro rose against the dollar as Forex traders took profits on their short positions. The Euro is on a current downtrend with the dollar. Last week the Euro fell to a 10 month low following the Fitch downgrade of Portugal’s credit rating. A rescue plan is in place with the involvement of the International Monetary Fund however the speed of deployment is the key for recovery.
Expect the Euro to fall further as the EU summit approaches and more European countries reveal their credit worthiness.
Personal Income and Outlays are due this morning as well as various treasury auctions so expect a slow trading day.
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 1st 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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About the Author
Shamim Ziyaaudhin is one of the editors of TraderMongers.com, a one stop trading news feed source for worldwide traders and investors. Their philosophy is to establish the standard for providing market news feed that is comprehensive, accurate, and concise. Providing technical and fundamental trading setups, economic numbers, and calendar events throughout the trading day. Shamim has a Masters in Business Administration from Fairleigh Dickinson University and holds a degree in Psychology from Rutgers University. Check out his daily report on TraderMongers Blogger.
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