Made Easy Forex

S&P 500 Pivots

The stock markets are closed for Good Friday however the banks and the bond markets are still open. Thursday marked the first day of the second quarter and the market finished just below the intraday high of 1181 at 1178.

Monday’s primary pivot point is 1176.74 and the new support levels are between 1174 and 1176. Several Fibonacci moving averages are converging within this range including the 8, 21, 55, and 144 on the 5 minute chart. These moving averages as well as the pivot points will create a sufficient support level 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 1174 pivot level.

Commodities Analysis: Gold and Crude

Gold gain $12 to 1126 as gold imports are up inIndiaahead 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 $1.55 to $84.87.The dollar losing ground played apart in pushing the commodities sector higher. Twoweeks ago 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 between the $80 and $81 however it has regained its footing from the previous week of $82 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 Greece struggles with issues on their debt.

Monday Economic Numbers

March ISM Non-Manufacturing Index expected on Monday. Last month’s February ISM Non-Manufacturing Index showed a significant increase in new orders to 53.0, which shows rising business activity ahead and possible improvements in the labor markets. ISM Non-Manufacturing Index has been around the 50 level since it rose 1.4 points to 50.1 in December while the manufacturing side has been showing positive upside momentum. Equities to watch on these numbers include: Agriculture, mining, construction, transportation, communications, wholesale and retail stocks.

February Pending Home Sales Index expected on Monday. Previously January Pending Home Sales Index rose 1.7% led by strength within the industrials sector, especially transportation equipment and aerospace. January pending home sales decreased 7.6% to 90.4 compared to December. However pending home sales still remains above December 2008′s 87.1. Analysts project stabilization for home prices as new-home sales will remain low due to lack of construction while inventories are pulled down.

Pending Home Sales Index is a leading indicator for housing activity providing demand for housing and economic trends. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. Equities to watch on these numbers include: Home builders, mortgage lenders, and home furnishings companies.

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