Fri, May 1 2009, 06:11 GMT
by Paul Brittain
US EQUITY POST FOMC RALLY STALLS ON DISAPPOITING PROFITS FROM EXXON MOBIL, SENTIMENT OVER CHRYSLER BANKRUPTCY.
US EQUITIES ended a volatile session flat to slightly higher as the technology sector, with its cash rich position, posted the highest gains of the session as financials, consumer, and material stocks retreated after touching technical resistance levels overnight. Positive sentiment over the near 10 to 1 ratio of outperforming to underperforming earnings reports received a reality check after Exxon Mobil posted a lower than expected earnings and Chrysler Motors brought speculation into reality as the automakers declared bankruptcy and moved forward with its planned merger of support with Fiat Motors. The action by Chrysler (with just a little support from the US Government) offered a reminder of the significant economic problems which still exist and require time and pain to work through. The government also struck a blow to the financial sector through its criticism of the inability of financial institutions and hedge funds to police the abuses of debt offered to the automakers as well as the inability of the parties involved to work out an alternative solution besides the bankrupting of a key US industrial entity.
It is likely that negative sentiment ay build going into next week as the end of the curve issue of employment will grab hold of traders focus. The US read on unemployment begins next Wednesday and culminates on Friday with the release of the BLS figures on nonfarm payrolls and unemployment.
Early gains in the market were achieved in the face of mixed economic data as worse than expected readings on US personal income and consumer spending were checked by fewer than expected new unemployment claims and a higher reading from the Chicago Purchasing managers Index. Earnings were mixed today as lower profits from Exxon Mobil due to falling crude prices were offset by better revenue numbers from Visa. NASDAQ futures posted the highest gains today on better earnings from Expedia and continued inflows of capital into companies that are perceived to have relatively low debt levels and strong cash positions.
Technically, June Dow Futures tested and bounced off a significant resistance level at 8260. The pullback came from a classic overbought 60 minute RSI indicator which peaked very close to 70 this morning. Support for the Dow has set initially at 8070, with 7992 as a likely support for Friday’s session. Looking into next week, the market could see a further pullback to test the low end support of 7835. New up target resistance level seems to be setting up at 8368.
| EQUITY RANGES | OPEN | HIGH | LOW | CLOSE | CHANGE |
| DJM9 (JUNE DOW) | 8225 | 8255 | 8085 | 8126 | 1 |
| SPM9 (JUNE S&P) | 880.00 | 885.70 | 864.80 | 870.00 | 0.90 |
| NDM9 (JUNE NASDAQ) | 1396.00 | 1418.00 | 1382.50 | 1393.50 | 15.75 |
Published on Fri, May 1 2009, 06:20 GMT
Alaron Futures and Options
| 822 W. Washington Blvd. Chicago IL 60607
http://www.alaron.com | info@alaron.com
Top Fundamental Stories - The world's largest economy remains fragile… by ecPulse.com
Mon, Nov 23 2009, 13:46 GMT
Fundamental Currencies Comments - Federal currency extends losses by ecPulse.com
Mon, Nov 23 2009, 11:12 GMT
U.S. Forex Market Commentary by GCI
Sun, Nov 22 2009, 22:11 GMT
Interest Rate Monitor - Trichet tempers European rate rally by Interactive Brokers LLC
Fri, Nov 20 2009, 15:10 GMT
Daily US Opening News by RANsquawk
Fri, Nov 20 2009, 12:01 GMT
Fed’s Bullard: USD still world’s reserve currency
Forex Live | Mon, Nov 23 2009, 01:02 GMT
Fed Plosser: Not Quite Time Yet To Raise Interest Rates -CNBC
Dow Jones | Fri, Nov 20 2009, 00:29 GMT
CURRENCIES: Dollar Off Lows After U.S. Data
Dow Jones | Wed, Nov 18 2009, 14:43 GMT
Asian forex market wrap: USD still down after Bernanke speech
Forex Live | Tue, Nov 17 2009, 05:01 GMT
Forex: NZD/USD gains at risk appetite returns
FXstreet.com | Tue, Nov 17 2009, 02:27 GMT
GET CASH BACK FOR YOUR TRADES! Learn more about the Pip Rebate Program