E-mini S&P above key level

Purchases of previously owned U.S. homes rose more than projected in May, climbing 4.9 percent to a 4.89 million annualized rate, the most since October, after a 4.66 million pace in April, figures from the National Association of Realtors showed today. Russian President Vladimir Putin voiced support for a cease-fire in Ukraine declared by his counterpart. Bullish British Pound bets measured by the CFTC are, as of last week, at the highest level since 2007.

Equities: The E-mini S&P 500 (CME:SPU14) is up 1.5 points to 1954.75, above a key market profile level of 1949. We see a potentially bullish profile structure possibly bringing the market up to 1969. The market is at very interesting levels, because on one hand we have fairly impressive U.S. economic data continuing to support the buying of the bulls, but in the other hand we have the U.S. Fed continuing to taper and possibly bring rates higher in 2015. Furthermore, we believe the ISIS situation in Iraq is a serious headwind against another major rally.

Currencies: The Euro (CME:E6U14) is down 7 ticks to 135.89. Our next key Fibonacci levels below here are 135.21, which held up as support recently, and then 133.76 below there. We would not be surprised at all to see the Euro head lower. The SEP14 Canadian dollar is up 14 ticks to 92.95, breaching a key moving average resistance line at around 92.75. 93.25 is our next market profile target area for the Canadian. The British Pound has been the talk of the media as of late, as it has been very strong, and recently breached the 1.70 level. Today it is unchanged at 170.01. The Pound may pull back a bit from here, but we would not be surprised to see it head higher and try to get to 1.72.


Bonds: The 30-year T-bonds (CBOT:USU14) are up 16 ticks to 135’26. The bonds have tested a key support trendline multiple times over the past several sessions, but have been unable to break it. The next key level above here looks like a Fibonacci level of 136’15. The next key impetus for the bond market could very well be July’s monthly jobs report. If we see a strong number, we could see the bonds break down below this key trendline we have found and possibly head towards 134’03.

Commodities: WTI crude (NYMEX:CLQ14) oil gapped higher on the electronic open last night, but is actually down $0.40 to $106.43 this morning, in what looks like a potentially bearish trading pattern. We have $105.00 as a key support level for crude. Natural gas (NYMEX:NGN14) has really slid lower over the past several sessions, and today is down around %1 to $4.51. We have a key support trendline coming in at approximately $4.45. Gold (COMEX:GCN14) is just about unchanged from Friday, trading at $1,316. We believe gold is in a neutral to bullish environment for the near term, and it may head to our next key level of $1,331.

 

Ed Note: Each trading day going forward, traders can listen to live, streaming squawk box commentary on FUTURESmag.com coming directly from the S&P trading pits in Chicago.

Ed Note: Each trading day going forward, traders can listen to live, streaming squawk box commentary on FUTURESmag.com coming directly from the S&P trading pits in Chicago.

About the Author
Anthony Lazzara

Anthony Lazzara, CEO of Newport Beach, Calif., commodities investment firm Lido Isle Advisors, spent 10 years as a trader and floor broker at the Chicago Board of Trade and Chicago Mercantile Exchange. Anthony has significant experience in the energy, fixed income, and equity futures markets. After being a long-time independent futures trader, Anthony saw a tremendous opportunity to educate investors on how to invest in professional traders. Anthony is now focused on his duty as CEO of Lido Isle Advisors.

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