From the desk of Joe Rios…
U.S. stocks rose modestly on Friday after late news of merger talks with chipmaker Intel Corp buying rival Altera Corp. Healthcare also helped the indices as biotech stocks ended higher after suffering a -7.0% drop earlier in the week. None the less, for the week the Nasdaq led the stock indices lower closing the week down -2.7%. Technically speaking the S&P 500 found a temporary support level set from the prior week’s price action at 2,030.75 and resistance level at 2,107.00. The new box range should be closely monitored for trading opportunities on the first few days of trading for the new week.
In the commodity market Crude Oil closed the week higher 4.0% but fell sharply on Friday erasing the previous session’s gains as Yeman’s conflict looked less likely to disrupt Middle East Crude shipments and focus turned to a potential Iran nuclear deal that could put more supply on the market. Natural Gas dropped by -5.3% testing a major key support level at the edge of a prolonged box range pattern.
In the currency market the US Dollar traded sideways in consolidation mode following the prior week’s steep fall. The weekly chart illustrates a Spinning Top formation in Japanese candlesticks signaling a lack of near term conviction from traders. A new box range was also established for most foreign currencies.
There is plenty of economic data in the upcoming holiday shorten week. Interestingly the Non-Farm Employment Change and Unemployment Rate will be announced on Friday while the markets are closed for the holiday. I expect traders to adjust positions during the week leading up to Friday.
– Joe Rios
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Scheduled economic data that may have an impact on the markets.
All Day EUR German Preliminary CPI
8:30 AM USD Personal Spending
10:00 AMUSD Pending Home Sales
3:00 PM USDA Agricultural Prices
8:00 PM NZD ANZ Business Confidence
4:30 AM GBP Current-Account
5:00 AM EUR CPI Flash Estimate
8:30 AM CAD GDP
8:50 AM USD FOMC Member Lockhart Speaks
9:45 AM USD Chicago PMI
10:00 AMUSD CB Consumer Confidence
12:00 PM USDA Grain Stocks
8:30 PM AUD Building Approvals
9:00 PM CNY Manufacturing PMI
9:45 PM CNY HSBC Final Manufacturing PMI
4:30 AM GBP Manufacturing PMI
8:15 AM USD ADP Nonfarm Employment Change
9:00 AM USD FOMC Member Williams Speaks
10:00 AMUSD ISM Manufacturing PMI
10:30 AMCL Crude Oil Inventories
8:30 PM AUD Trade Balance
4:30 AM GBP Construction PMI
8:30 AM USD Trade Balance And Unemployment Claims
8:30 AM CAD Trade Balance
8:30 AM USDA Weekly Export Sales and Trade Data
10:30 AMNG Natural Gas Storage
8:30 AM USD Nonfarm Employment Change