Many major markets are reversing recent trends this morning, with gold and crude oil moving up, foreign currencies retracing some recent losses, and the U.S. equity markets selling off a bit after not having a losing day in March yet.
APR13 gold futures are up $14 to $1,591 this morning. With potentially much more stimulus coming from England especially, it seems that gold sellers have gotten scared to be more active in their selling as central bank stimulus is a huge driver of gold prices. With that said, gold is still well below our key resistance level of $1,630, and if it does indeed travel up to that level, we believe it will head back lower from there.
APR13 crude oil futures are also having a nice rally today, trading up almost $1 to $92.86. With geopolitical tensions getting stronger, especially with North Korea and even USA VP Biden recently discussing the potential of a pre-emptive strike on Iran to block their nuclear production capabilities. We believe the fundamentals, aside from geopolitical happenings, are indeed bearish for crude oil, but many times the fear of supply disruption due to potential inter-country conflict takes precedence.
We focus more on the E-mini S&P 500 futures today. We have marked on the chart that today, this market ran into a multi-month trendline resistance, and now is down over 5 points today. This is not a big retracement, but nevertheless, technically traders thought it was time to take some profits and get out of some bullish positions due to trendline resistance. We have key support levels at 1535 then 1525. We would not be surprised to see the market pull back to the 1525 area.
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