Market Overview – Morning Express
– Fed Chair Powell, at the IMF conference, said “appropriate to move a little more quickly”. He added that a 50-basis point hike is on the table and it is “essential to restore price stability”.
– Bill Baruch joined the TD Ameritrade Network yesterday and discussed why the Federal Reserve should move quickly over the next 3 months.
– U.S. Dollar Index sets new high, highest since March 2020 whipsaw.
– U.S. 10-year yield hit 2.975% overnight, did not take out early Wednesday 2.981%, yet.
– U.S. 10-2-year curve flattening this week by 23-basis points.
– Eurozone Flash PMIs for April topped estimates. Although German Manufacturing was light at 54.1.
– IMF Meeting continue, ECB President Lagarde makes comments at 8:00 am CT
– U.S. Flash PMIs for April due at 8:45 am CT.
– Russia targets aim at entire south of Ukraine, would paralyze the country’s access to ports.
– China rolls out new containment plan in Shanghai to battle virus, WSJ article. U.S. Dollar +2.4% against the Yuan this week in best week since August 2015.
– After that move in Dollar/Yuan in August 2015, equity markets tanked the following week.
– Earnings from Verizon and American Express beat top and bottom estimates, but stocks are both lower by about 2% premarket.
E-mini S&P (June) / NQ (June)
S&P, yesterday’s close: Settled at 4390.50, down 65.00
NQ, yesterday’s close: Settled at 13,728.25, down 276.50
– Maintained cautiously Bearish Bias through the short-term rebound but noted yesterday we would flip cautiously Bullish upon a close above major three-star resistance at 4519.75-4525.75.
– S&P failed in front of that resistance but set a higher high than last week. Last week’s low was 4375.50 and a close below there brings an outside bearish week.
– S&P has not taken out the Sunday night low and still responding to major three-star support at 4362.50-4363.50
– Yesterday’s settlement will align to create our Pivot and point of balance in each.
– Contained action below first key resistance at … Click here to get our (FULL) daily reports emailed to you!
Crude Oil (June)
Yesterday’s close: Settled at 103.79, up 1.60
– Concerns over ongoing China lockdowns, noted above, has weighed on Crude Oil through the session. U.S. Dollar +2.4% against Yuan.
– Ongoing geopolitics are buoying further weakness as Russia sets aims at southern Ukraine.
– EU could impose ban on Russian Oil as early as next week.
– Broad weakness across equities, especially in the material sector, signal indiscriminate selling, exhaustion, and near-term concerns over China.
– Pivot and point of balance has been critical, as market hugs wide range, remains that from yesterday at 102.86-103.44. Yesterday managed to settle above here in a constructive manner.
– Major three-star resistance at 105.23-105.64 held like a charm yesterday.
– We have reduced support to minor levels, our major focus to lean on remains two waves of major three-star support at … Click here to get our (FULL) daily reports emailed to you!
Gold (June) / Silver (May)
Gold, yesterday’s close: Settled at 1948.2, down 7.4
Silver, yesterday’s close: Settled at 24.621, down 0.65
– U.S. Dollar has gained 2.4% against the Chinese Yuan this week as lockdown in Shanghai continue. Best week since August 2015.
– Move in Yuan has certainly hurt materials stocks.
– Newmont mining missed top and bottom-line earnings estimates this morning and is down about 3.5% premarket.
– U.S. Dollar Index highest since March 2020 whipsaw, weighing on metals as rates rise and 10-year yield eyes 3% for first time since December 2018.
– Gold battling at and above massive level of support at 1923.7-1924.9
– Silver must respond to support aligning with previous lows at 24.04-24.20 and regain Pivot at … Click here to get our (FULL) daily reports emailed to you!
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