U.S. Indexes closed in the black with S&P +0.3%, as buyers were able to absorb part of the fall that took place on Thursday. Now SPY that reflects S&P500 varies about 8 EMA on a daily chart and buyers won’t give up. I’ll measure sentiments on the market with Fibonacci levels. For now, it’s a controlled rollback (38%) after the movement down from $196.05 to $193.11. If sellers are able to hold up 30-50%, then we might see a continuation of the movement down. $193.11 low’s penetration may lead to the next support $192.50 (21 EMA).
Asia closed indefinably, Japanese Nikkei is -1%, Chinese index has grown up for 0.7% to the highest point of April 21.
Geopolitical instability in Iraq continues that heats oil quotes. This may adversely affect the companies of the Industrial Sector that use this resource in their production, as well as transportation companies, including airlines.
The Commission Meeting
All the investors’ attention this week is to be paid to the meeting of the Commission on Securities in the United States on Wednesday. It’s worth mentioning that the Fed has shortened the biggest part of bonds’ redemption. In this way the Fed turns quantitative easing aimed to boost the economy and reduce unemployment. The British CB may also follow its transoceanic neighbor and raise the interest rates that are now at their historic lows. ECB and Japanese CB are in the active phase of Monetary Policy.
USD/JPY is in the consolidation since the beginning of this year. Last week this pair has jumped of the resistance about 102.800, broken the range and is now traded lower than the key moving averages. If sellers want to stay in control of the price they should trade the level of 102.060-.130. The previous 101.600 low’s penetration, and then 101.42 may attract the sellers’ attention and we’d see 101.000, where 200 EMA is.
Apple shares, after the split was held (the price decreased about 6 times and simultaneously by the same amount increased the number of shares that are in free circulation in the market), remained unchanged, then fell steadily and closed below 8 EMA for the first time since May 16. It’s a signal for active traders that the middle term sentiments on the market are to change for more bearish ones. I’ll look for trading opportunities down from the $91.90-$92.44 resistance. $90.80 low’s penetration may lead to the fall to the next support $90.00, where 21 EMA is.
Intel shares reached a new peak in the last 5 years after the company announced that sales would grow more than it was expected earlier. News from Intel are also favorable for Microsoft and Hewlett-Packard, as they all operate in the same sector and are leaders in the PC market and its components (microchips operating system). Let me remind you that the prospects of Intel were weak, as the share of tablets and smartphones. I’ll be repelled from $29.56 level that should act as a support, vertex of $30.06 last resistance. A few days of rest will not interfere, as investors and traders need time to absorb a large movement.