(The Weekly Digest reproduces the morning capsules made available every morning before the market open in the Real Time Feeds to the paying subscribers. )
THE GOOD AND BAD OF S&P 500 BREAKOUT
February 28, 2014
Yesterday S&P 500 finally broke out of the heavy resistance at 1850. The good is that it broke out, took out the stops, and did not fall back under 1850.
The bad is that after the breakout, the behavior is atypical of S&P 500 compared to major historical breakouts. History tells us that in major breakouts, S&P 500 rockets up after the breakout. This was not the case yesterday and is not today in the pre-market. For this reason, it is too early to become optimistic about yesterday’s breakout.
Interest rates, oil, and gold are range bound.
Euro is hitting new highs against the U. S. dollar as inflation in Eurozone eases.
In the U. S., GDP second estimate came at 2.4% vs. 2.6% consensus.
Gold futures are at $1330, silver futures are at $21.30, and oil futures are $102.05.
S&P 500 resistance levels are 1875 and 1900; support levels are 1837, 1825, and 1800.
DJIA futures are up 2 points.
DISAPPOINTMENT OVER FAILURE TO BREAK 1850 IN S&P 500, YELLEN ON TAP
February 27, 2014
As hard as bulls might try, they were unable to break the key resistance in S&P 500 at 1850. Yesterday every rally attempt was met with selling.
Janet Yellen is testifying before the Congress this morning. Her testimony and follow-up Q&A may move the markets.
Yesterday interest rates fell and are drifting further down this morning.
Both oil and gold are attempting a rally but meeting heavy selling.
Gold futures are at $1332, silver futures are at $21.30, and oil futures are $103.06.
S&P 500 resistance levels are 1850, 1875, and 1900; support levels are 1825, 1800, and 1775.
DJIA futures are down 8 points.
STOCK BULLS TRYING TO BREAKOUT, GOLD PULLING BACK
February 26, 2014
In pre-market trading, stock bulls are trying for a breakout. There is not much economic data to influence trading today.
Gold is pulling back.
Oil is staging a small rally.
Interest rates are hanging near their lows.
Gold futures are at $1334, silver futures are at $21.60, and oil futures are $102.43.
S&P 500 resistance levels are 1875 and 1900; support levels are 1827, 1825, and 1800.
DJIA futures are up 18 points.
HOME PRICE MOMENTUM SLOWS, SMART MONEY MEETS MOMO CROWD IN GOLD
February 25, 2014
Home prices have been rising at a rapid clip and that has supported the stock market. Case-Shiller Home Price Index for December non-seasonally adjusted rose only 0.1% month over month.
Stock market is trying to digest yesterday’s gains.
Oil is falling and so is natural gas.
Gold is seeing fairly aggressive selling by Smart Money this morning but the selling is being met by buying from the momo crowd.
Gold futures are at $1335, silver futures are at $21.86, and oil futures are $101.64.
S&P 500 resistance levels are 1850 and 1900; support levels are 1837, 1825, and 1800.
DJIA futures are down 11 points.
CHINA ENGINEERS YUAN LOWER, CHINESE INVESTORS RESPOND BY BUYING GOLD AND SILVER
February 24, 2014
Under international pressure, Chinese currency yuan had been steadily moving higher against the U. S. dollar. The People’s Bank of China has lowered its target by 0.5%, this has resulted in a sustained weakness in yuan. Chinese investors are responding by buying gold and silver.
In the U. S., the stocks are likely to open higher.
Interest rates are falling.
Oil is staging a mild pull back.
Gold futures are at $1329, silver futures are at $21.94, and oil futures are $102.47.
S&P 500 resistance levels are 1850 and 1900; support levels are 1825, 1800, and 1775.
DJIA futures are up 23 points.