U.S. stocks rose, with benchmark indexes trading near all-time highs. Data showed payrolls rose in April by the most in two years. The 288,000 gain in employment was the biggest since January 2012 and followed a revised 203,000 increase the prior month.
Equities: The E-mini S&P 500 (CME:ESM14) is up 4 points to 1881.75. The market is now well above one of our major “lines in the sand” of 1867, and we believe that this market may test the 1900 level very soon. The taper is not negatively effecting the SP500 at all, conversely it seems to be confidence boosting in that it shows the Fed believes the economy is on the right track. Today further supported that idea because the payrolls gained the most in two years. We believe as long as the market can stay above the 1867 area, we could not only see 1900, but potentially higher levels than that. The market seems to be very happy with these strong economic reports.
Bonds: Bonds(CBOT:USM14) are down 19 ticks to 135’03. The bonds dipped to around 134’17 upon release of the number, but rallied right back to above 135. Overall, markets seemed to have sharp volatile reaction this morning, but have since quieted down. If the equity markets continue to march higher, we would not be surprised to see bond prices drift lower. Bonds still of course have that chance of staying above the 135 level and heading to our previous idea of 138, but now that the number is out this morning, it looks like the S&P 500 could head higher, which could be bearish for bonds.
Currencies: The Euro(CME:ECM14) dipped upon release of the number, and is now down 40 ticks to 138.23. We believe the Euro, if it can break below 138, could head to 1.37, if not lower. This region seems to be a very key area for the Euro, and it looks like there is a tug of war going on between the bulls and the bears. The upper resistance level looks to be 1.39, and the lower support level seems to be 137.85. The Yen(CME:JYM14) tanked on the number, now down 47 ticks to 97.30. The Yen briefly dipped below 97. The Pound has retreated from above 1.69, and is now down 53 ticks to 168.36. The Pound(CME:BPM14) still has been in a very strong uptrend this year, and we still believe it might approach the 1.70 level. The JUN14 USD rallied today, and is up 26 ticks to 79.84.
Commodities: Gold (COMEX:GCM14) is down $1 to $1282. This is its 5th down day in a row. The volume has looked very bearish for gold recently, and we would not be surprised to see it head lower to approach $1275. Overall though we are not expecting a lot of volatility for gold in the near future. WTI crude oil (NYMEX:CLM14) is up $.05 to $99.47, after dipping below $99 yesterday. It seems as though bears are still active because as soon as it approached $100 today, it came right back down. JUL14 coffee is almost unchanged at $2.05.