Equity indices started off the day essentially flat as investors digested yesterday’s big rallies. As the morning has progressed, equities appear to have regained their footing and have started to advance once again with the Dow Industrials (US30 CFD) breaking through 8,600, the NASDAQ 100 (NDAQ100 CFD) breaking through 1,500, and the S&P 500 (SPX500 CFD) breaking through 930 with the S&P/TMX 60 (Toronto60 CFD) testing 625 resistance and the S&P/TMX Composite testing 10,250 resistance. Should indices be able to hold above these levels, advances toward tests of 8,850 for the Dow, 1,600 for the NASDAQ, 960 for the S&P, 650 for the 60 and 10,600 for the Composite may be possible.
News flow today has generally been positive with positive earnings out of JPMorgan Chase (NYSE: JPM, Stock Forum), takeover speculation in the fertilizer sector and better than expected jobless claims numbers (522K vs. street 553K) apparently boosting spirits. This has enabled indices to overcome normal profit-taking and resistance after a big run and to shrug off disappointing Philadelphia Fed numbers (-7.5 vs. street -4.5).
Commodity markets have generally seen quiet consolidation at higher levels with copper trading near $2.40/lb, crude oil trading in the $60.00-$62.50/bbl range, gold holding near $935/oz and silver trading above $13.25/oz. There have been two big moves of note. Natural gas rallied from $3.30/mmbtu support toward a test of $3.50 resistance after inventories increased by 90 BCF last week vs. the 91 BCF street estimate despite cooler temperatures in consuming regions. On the other hand, soybeans have dropped off again, dipping at times below their key $10.00/bushel level.
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