The U.S. stock market has proven to be very resilient, even in the face of recent Cyprus bank crises. Today, the JUN13 E-mini S&P 500 futures contract is trading up 8.75 pts to 1547.50. Our key level for this market is the 1550 level. We believe 1550 is a very strong line in the sand. If the market can hold above 1550, we believe it will continue to march higher. If there are more issues in Europe which rattle the markets, then 1550 might be a ceiling for the market for the near term. We have a sense that the market is still overall very bullish, and we believe investors want to be long stocks and will not be so skittish as to unload all their positions so quickly.
After reaching a key area at $7.35, the corn futures market has come back down today after a nice rally in March. Corn is down $.086 today, trading at $7.24. We believe this move is profit-taking, and we believe if corn gets lower to $7.15, buyers will really like going long at those prices. That is our opinion.
Silver is down almost 2% this morning, as investors seem to be focused on buying risk on assets such as equities. Silver has still not hit our first downside target of $27.50, and we believe that it is on its way there. As of this writing, silver is down to $28.66. Gold is down almost $7 to $1607.
We focus more on the British Pound today. The Pound has had a big sell off this year, and once it dipped below $1.50, buyers came in to rebound it above that key level. Today the Pound is up 53 ticks to 1.5228. We believe the Pound may sell off once again, but might even rally to 1.5350. At this level, we have a stronger belief in the Pound going down than up. The Pound is at our first key resistance level today.
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