Wednesday, May 1, 2019

Daily Update

What US stock GOOG did yesterday, S&P did today though with smaller % decline. The two however share a common logical reason that most would have guessed by now. Today, S&P futures dropped from a high of 2961 to as low as 2915 with a decline of 46 points. While the daily trend is still up, S&P has to get past hourly trend resistance of <SP_HT1> to uptrend and potentially re-test the highs. VIX jumped 12.8% closing at 14.80. A weekly close above <VIX_WT1> would be bullish for VIX in the interim.

With sell signal from last Thursday, US Dollar Index futures dropped today trading as low as 96.87 before closing higher at 97.37. DXY futures are still on daily sell signal. Daily trend support is at <DXY_DT1>. Hourly and 4-Hourly trend level is at  <DXY_HT1>, <DXY_4HT1>. To uptrend level <DXY_HT1> must hold and price needs to get past <DXY_4HT1>. Similarly, EURUSD still continues on daily buy signal from last Thursday. Daily trend resistance is at <EURUSD_DT1>.

ADP April employment report came positive with payroll increase by 275K. April's PMI manufacturing index marginally improved to 52.6. April's ISM manufacturing index dropped to 52.8 from prior reading of 55.3. March Construction spending dropped by -0.8% m/m and -0.9% y/y.