Equities wait for Facebook as indexes test support

Equity indices are at or close to major support areas as we await the Facebook IPO and whether or not it adds strength. Talk of asset allocation overnight lifting equities in EU and US (buying stocks, selling fixed income). NDM has first key resistance at 2522 area. SPM nearly hit its major support area of 1283/89 (200 day avg also at 1270). 1317.50 initial pivot pt here.

IWM tested its major support yesterday (.382 and 200 day avg around 75.20/25) and will be initial key to start the day. R2000 future needs a settle back above 763 for upside swing potential. SPY versus QQQ settled on its key .382 resistance on the year. QQQ has 61.44 as major support. DJ Transports settled on its closing key 200 day avg.

Expiration today in equities may keep the market in line… Spanish banks are bouncing after five days of selling as shares of Bankia [BKIA.ES] have traded higher by more than 20%, amid speculation that Spain could seek to reinstate its short-selling ban related to financial shares. EUR/JPY is a favorite trade idea long as it holds its .786 potential reversal support.

In treasuries the 10/30 yield curve broke thru the key support yesterday at 113 bps and has 107 bps as next key. 5/30 holding .618 support.

Market Sentiment

CONTRACT / SECTOR

THEME POS / NEG

POSITION STAGE

TARGET / KEY PTS

STOCK INDICES US

Pause

Near Major Support

SPX 1275/90 target

US TREASURIES

Pause

10/30 yield 107bps*

TYM 132-19* tl

CRUDE WTI/BRENT

Pause

June RBOB 2.910*

Brent 116.25*

METALS

Mixed

Gold 1541* close

Copper 3.58 close*

CURRENCIES

US$ positive

GBPUSD negative

EURUSD 1.2532 tgt

GRAINS

CN 6.22 pvt

CN/WN breaks chnl

CN/CZ 96.5* pivot

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