After an overnight and
early morning surge, U.S. equity markets are still up at the
mid-session and holding on to most of its session gains. An easing of
tensions in the Euro Zone and good U.S. economic data is helping to
raise optimism amongst investors.
The June E-mini S&P 500 is
finding resistance at a downtrending Gann angle at 1094.75. Breaking
this resistance point could trigger a further rally to a key
retracement zone at 1105.75 to 1122.00. The June E-mini NASDAQ is
holding steady with 1867.75 to 1894.50 its near-term upside objective.
Finally the June E-mini Dow is setup for a further rally to a 50%
retracement level at 10337.
The surge in equity markets is
pressuring the September Treasury Bonds. Investors are liquidating
flight-to-safety positions as demand is up for higher yielding assets.
The daily chart indicates a potential retracement to 119â€™22 over the
The easing of tensions in the Euro Zone and greater
demand for risk coupled with oversold conditions is helping to drive
September Crude Oil higher. A new main bottom has been formed at 69.62.
Regaining and holding above a 50% level at 72.16 is also helping to
underpin this market. Upside momentum is strong, but the main trend
remains down. There is an outside chance that this market may rally to
80.88 over the near-term.
August Gold is trading lower after
failing to take out a .618 retracement level at $1219.50. This move
completes a retracement of the $1251.40 to $1168.00 range. Despite the
falling Dollar, hedge position liquidation is pressuring gold.
demand for higher risk assets is helping to drive down the U.S. Dollar
index at the mid-session. The Dollar is trading lower against most
major currencies with the exception of the lower yielding Japanese Yen.
June Euro is trading higher at the mid-session. This morningâ€™s rally
has driven the Euro into a Fibonacci retracement level at 1.2345.
Additional resistance is coming in at a downtrending angle at 1.2371.
Regaining both of these prices could trigger a further rally to the 50%
price at 1.2407.
The June British Pound is moving higher and away
from the support base it has been building over the last five days.
Based on the short-term range of 1.5391 to 1.4229, traders should look
for a near-term retracement to 1.4810 to 1.4947.
The June Swiss
Franc is trading higher after confirming its closing price reversal
bottom at .8562. Upside momentum is building which could drive this
market into the retracement zone at .8862 to .8933.
demand for higher yielding assets is helping to weaken the June
Japanese Yen. Trading has been quiet lately indicating impending
volatility. Watch for a surge in U.S. equities to trigger a quick break
back to 1.0954 over the near-term.
Strong crude oil is helping
to support the June Canadian Dollar. Once again this market has
rejected the former bottom at .9213. Upside momentum is building which
could drive this market to .9552 to .9632 over the near-term.