Monday, 9 May 2016

Pre-Market Brief

Good morning. US equity futures are moderately higher, sp +6pts, we're set to open at 2063. USD continues to claw upward, +0.2% in the DXY 94.00s. Metals are under pressure, Gold -$15, with Silver -0.9%. WTIC oil is +1.9% in the $45s.



Well... considering the price action from last Friday, its not exactly surprising to see the market is set to open somewhat to the upside.

As a fair few recognise, price structure since the 2111 high is arguably one giant bullish wedge/flag. Some equity bulls could justifiably argue we're headed >2111 and onward to 2134.. and the proverbial moon.

However, much the same was said last Nov/December... and that didn't end so well for the bull maniacs.

Best guess:  the week begins positive, but resistance (2077 at the Wed' close) will hold, and a third consecutive net weekly decline in the 2020/1990s remains viable.

Any break >2080 after the Wed' open would bode for a strong bullish breakout.

early movers...

CHK +4.6%... but then.. it was lower by almost -20% last Friday... and the company remains on my disappear list.

GDX -2.5%.. as the metals are on the slide... no doubt with concerns about the recovering USD.

TSLA +1.3% in the $217s, but still broadly weak...  the 200/195 zone looks due this month.

Overnight action

Japan: +0.7% @ 16216

China: broadly weak, -2.8% @ 2832, as someone important suggest no further easing.

Germany: currently +1.9% @ 10053. Again, the 10K threshold is important... equity bulls need to hold the gains.. or another reversal this week threatens much lower levels into end month.

Have a good Monday