For the bulls, important resistance levels exist at 14311.00 all-time high registered today, also at 161.8% Fibonacci extension target at 14765.00, and finally at 261.8% Fibonacci extension target at 15912.00 .
For the bears, important support exists at 13720.00 where the MA50 stands now, also at the MA100 level which coincides with the 50% Fibonacci retracement level of the last move at 13500.00, and finally at 12914.00 derived from the low of the last downward move registered on May 13th.
It’s a busy day ahead for the markets, with prelim private sector PMI numbers for June due out of the U.S later today. Crude Oil Inventories and FOMC comments also expected by investors.
• U.S. stocks were higher after the close on Tuesday, as gains in the Technology, Consumer Services and Oil & Gas sectors led shares higher.
At the close in NYSE, the Dow Jones Industrial Average added 0.20%, while the S&P 500 index climbed 0.51%, and the NASDAQ Composite index gained 0.79%.
• Existing home sales dropped 0.9% to a seasonally adjusted annual rate of 5.80 million units last month. Sales fell in the Northeast, West and the densely populated South. They, however, rose in the Midwest, which is generally considered as having more affordable homes.
• U.S. companies borrowed $8.1 billion for capital investments in May, 20% higher than last year, the Equipment Leasing and Finance Association (ELFA) said, as an economic recovery fueled by rising vaccinations and easing curbs drove up demand.
In the second straight month of double-digit growth in borrowings, more companies lined up for new loans, leases and lines of credit compared with last year, but borrowings in May fell 17% from the previous month.
• Federal Reserve Chair Jerome Powell on Tuesday reaffirmed the U.S. central bank's intent to encourage a "broad and inclusive" recovery of the job market, and not to raise interest rates too quickly based only on the fear of coming inflation.
"We will not raise interest rates preemptively because we fear the possible onset of inflation. We will wait for evidence of actual inflation or other imbalances," Powell said in a hearing before a U.S. House of Representatives panel.
• At 12:30 (GMT) CAD Retail Sales will be announced. This report is the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
• At 12:30 (GMT) CAD Core Retail Sales are also published. This report is measuring the change in the total value of sales at the retail level, excluding automobiles. Automobile sales account for about 20% of Retail Sales, but they tend to be very volatile and distort the underlying trend. The Core data is therefore thought to be a better gauge of spending trends.
• At 12:30 (GMT) US Current Account coming up. This is a measure of the difference in value between imported and exported goods, services, income flows, and unilateral transfers during the previous quarter.
• At 13:45 (GMT) US Flash Manufacturing Purchasing Managers Index (PMI) is due. This is a survey of about 800 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.
• At 13:45 (GMT) US Flash Services Purchasing Managers Index (PMI) is also due. This indicator is a survey of about 400 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.
• At 14:30 (GMT) US Energy Information Administration (EIA) Crude Oil Inventories coming up. This indicator is a measure of the change in the number of barrels of crude oil held in inventory by commercial firms during the past week.
US Indices yesterday:
• Dow Jones +0.20%
• S&P 500 +0.51%
• Nasdaq +0.79%
Sources: Investing.com, forexfactory.com