U.S. markets refreshed record highs and continued grinding higher in a slow pace, as investors considered mostly upbeat earnings from companies including Ford Motor, Facebook, Apple, Microsoft, Google and mixed economic reports. There are two arguments: the pessimistic one that says we should have a correction because we haven't had one for a long time and that valuations are stretched; and then the bullish argument is that we're experiencing an improving economy and corporate profits are decent.
Apple broke through to the new highs but failed to hold above. Still acting well, some flagging sideways will be healthy before it will go through $98. I think that at some point this year we will reach $100 mark, as analysts are still positive about perspectives of this company. Everybody await for new products maybe this autumn (iWatch, iPhone 6, Smart-TV and others). My plan is to buy pullbacks to support levels and short term 8 and 21 EMAs. If it builds an upper-level base and breaks out, I expect to see some continuation.
Google holds well above the breakout point after strong earnings release. Now, it trades above 8/21 EMA and builds a nice base in front of highs preparing for break up of $614 resistance zone. In case of downside scenario you can buy pullbacks at $595.60, then $574.50. Major support at $550, close to 200 EMA.
Next week we have couple of interesting reports from oil companies like Chevron and Exxon Mobile. Geopolitical situation can influence on their future profits as they depend on price of oil. If Chevron holds above breakout point $133.57, it may continue higher.
Russia also faces the risk that threats of further sanctions could spur more capital outflows. Following the crash of Malaysia Airlines Flight MH17, believed to be downed by a surface-to-air missile, in territory controlled by pro-Russian separatists last week, both the U.S. and the EU are weighing sweeping new sanctions against Russia. The proposals include a potential ban on all Europeans purchasing any new debt or stock from the country's largest banks, but not on Russian sovereign debt. USD/RUB bounced off the support that earlier acted as a resistance, broke up its descending channel and bounced off 8 and 21 EMAs which act like support.