USD INDEX
Sellers controlled today’s activity with a decisive move lower. Weaker data (PCE, GDP) could make for a softer Fed path, treasury yields easing, and perhaps a bout of profit-taking following a sharp recent run-up, all contributing. Support continues to be guarded by buyers. Resistance at 99.49 with support at 98.84.
S&P 500
Buyers added to the existing uptrend, going on to set yet another record high for the index. AI driven tech earnings, yields backing off slightly and weaker GDP data (which seems to have been interpreted as the Fed possibly being less aggressive later) ?all contributing. Resistance at 7585 with support at 7505.
GOLD
The metal bounced back with a strong showing today. Key drivers: weaker USD, lower yields, and gold’s traditional safe-haven status stepping up in the face of the USD staying away as the geopolitical uncertainty in the middle east still showing no signs of a resolution. Technically traders stepping in at support levels added to the momentum. Resistance at $4518 with support at $4371.
BRENT OIL
Prices remain low in spite of the stalemate US/Iran conflict. The future-looking oil market is also trading on expectations of future supply risk easing. The fear is not worse and a best- case scenario outweighs a worst- case scenario, while negotiations continue. Also in this vein, markets become desensitized if conflict continues without a drastic escalation. Technically it appears that the dividing line from $100 has moved lower to the $96 area. Note current support has held since the start of the war 3 months ago. Resistance at $96.11 with support at $91.37.
BITCOIN
The downtrend continues as sellers win out for a 3rd consecutive day of lower highs and lower lows on the chart. From a technical perspective buyers did step in during the US session but too early to say if the current support will hold. In order for a reversal to be initiated, there needs to be demand for the cryptocurrency, as opposed to a natural technical retracement. Resistance at $74.4K with support at $72.4K.
