- Hewlett-Packard Co. (HPQ) and Priceline.com Inc. results topped estimates as the S&P 500 rose in early morning trade.
- Ukrainian protesters agreed to an offer from President Viktor Yanukovych to hold early presidential elections by December to halt a deadly three-month political crisis.
Equities: The March E-mini S&P 500(CME:ESH14) is up 4.75 points to 1841. Our next market profile target is 1860. We would not be surprised to see the market approach that level. The market seems to be happy with recent corporate earnings, and potentially looking forward to warmer weather as a possible contributor to upcoming economic growth in housing and jobs. The overall theme is that we are in a bull market. The positive agreement in the Ukraine could also be contributing to today’s bullish bias.
Bonds: March 30-year bonds(CBOT:USH14) are flat at 132’24. If the equity markets continue their strength, bonds will likely head lower. We would not at all be surprised to see bonds attempt to break the 2013 lows in the not too distant future, perhaps by this summer. On the daily chart, the MACD seems to be in bearish mode, while the moving averages still have not fully crossed into bearish mode at this juncture.
Currencies: The euro(CME:ECH14) is strong today, up 30 ticks to 137.50. It has serious underlying strength and could rally up to 1.40. The Canadian dollar(CME:CDH14) has been weak and today is no different, with the loonie down 25 ticks to 89.73. Our next downside market profile target is 88.88. Perhaps this could be a support level. The British pound(CME:BPH14) is up 51 ticks to 167.08. We still believe over the longer term the pound could approach 1.70.
Commodities: March natural gas(NYMEX:NGH14) has calmed down and is currently trading at $6.05. We believe the recent $6.40 high may hold until this contract expires next Wednesday. April heating oil(NYMEX:HOJ14) is down over 1% today to $3.05. We also watch an interesting development in copper; the Mar14/May14 copper spread has exploded recently, up 2.8¢. March copper(NYMEX:HGH14) looks like it could continue to head higher. May coffee(NYBOT:KCK14) broke above the $1.70 level again this morning, and is now unchanged at $1.6945. April crude oil is down 55¢ to $102.19 after an impressive run up in 2014.