First-time jobless claims fell by 10,000 to 332,000 in the week ended March 9, the fewest since mid-January, according to data today from the Labor Department in Washington. The Dow Jones Industrials has made record highs for seven straight days, and the S&P 500 is just a few points away from its all-time high made in 2007. Technically, one of our next key upside targets is 1630 for the S%P 500. The market might begin to consolidate before potentially hitting that level. We believe the market will rally more, but consolidate in the high 1500s, before hitting 1600.
In commodities news, cotton has been in an uptrend since the beginning of 2013, and today is up around 1.5%. Cotton has formed a low base of around $.70 per pound, and now is trading at almost $.90 per pound. Cotton prices have been supported after the USDA said last week that world cotton reserves will be lower than forecast a month ago as demand increased in China, India and Bangladesh. Our next key resistance level for this market is at the $.94 level.
The Euro currency continues to hold below the 1.30 level, and we believe this market may head lower to the 1.2750 level. The Aussie dollar experienced strong buying after a solid jobs report last night. The British Pound also have experienced a reversal from its strong selling this month, and is now trading back above 1.50, at 1.5020.
We focus more on Natural Gas. It looks like Natural Gas (APR13) has formed a base at $3.20. This market, due to cold weather as well as diminishing supply numbers, has rallied nicely this month, and today is up another $.10. Our next key resistance/target level is at $4, and we believe this market is headed there. We have our first major support at $3.55. If Natural gas gets back down to that level, we believe buyers will like getting long.
Click to enlarge.