Treasuries look strong

S&P appears weak

The June S&P 500 contract (SPM) remains slightly negative as it holds below internal trend line and has the 1378.50/1380 area as initial target. SPX will be slightly negative early below 1398.50 to start the day with 1385.50 as initial support. DJ Transports broke a short term trend line at 5300 and adds to negative theme a bit.

 

Ten-year Treasury note yield is lower and holding below closing key pivot point, nearing its 200-day moveing average of 2.23%. The five-year note (FVM) has 122-05 area as upside initial pivot point and 122-13 as target resistance. Treasury bonds (USM)  held first key support yesterday and is likely to firm further to test 138-05 first major resistance. The Bund is firm again today and gaining after holding above its key 200-day moving average, 137.61 is its .618 retracement and is testing that level this morning on chatter of U.S. Bank sell programs out of UK. XLF is slightly negative as it is unable to settle above its .786 retracement of 15.86. The TY/SP is testing its closing pivot in premarket trade. DAX has 6939 as its 21-day moving average, which we will use as initial pivot. Nikkei is lower but holding above its 200 week moving average of 9875*. April Gold is positive for now after holding its key .618 retracement support perfectly yesterday. GFI 200 day is 13.51*.

CONTRACT / SECTOR

THEME POS / NEG

POSITION STAGE

TARGET / KEY PTS

STOCK INDICES US

Mixed/Negative

IWM 80.68 trend   line

SPM 1378/80*

US TREASURIES

Positive

USM 138-05

Bund   135.38

CRUDE WTI/BRENT

Positive/Mixed

Brent 124.23* key

May WTI 104.62 tl

METALS

Positive

Gold 1627.5** key

Copper 3.93*

CURRENCIES

EURUSD 1.3303*

US$ Positive 79.10

USDCAD positive

GRAINS

Mixed

SK 13.78* resist

May Corn 6.52/6.56

 

About the Author
David Wienke runs Triquetra Resources Ltd. in Riverside, Ill. (www.triquetraresources.com).
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