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US Market Review 13th May 2021

May 13, 2021 (11:21)

by Elina Nikolova

The S&P registered new all-time highs on 10th May 2021 reaching as high as 4238.00 points, before falling to close the day below 4200.00. The price action since then failed to reach record highs, following suit with the DOW for the past 2 trading days. The RSI (Relative Strength Indicator) indicator is trending below the 50 level entering bearish area - not oversold - and is pointing downwards which is a signal of weakness. Additionally the RSI registers consecutive lower tops as the price registered consecutive higher tops indicating another potential weakness of the price action. The price is trading below the uptrend line which provided support yesterday and is attempting to penetrate the 50 Day Moving Average (MA 50) which sits just below the trendline.
A break and close below the MA 50 may signal a further sell-off. Important support levels at 4045.00 where the MA 50 lies, at 3961.00 level formed from an inside support from March, and at 3843 level formed from a previous low on March 25th.
A return of the price today above the tentative trendline may signal a reversal of the sell-off. Resistance levels exist at 4121.00 price level from an inside resistance formed on May 4th and at the recent all-time high and psychological level of 4238.00.

• The US markets will be busy in terms of announcements today. The news announcements include CPI and Core CPI, followed Crude Inventory levels.

• U.S. stocks were lower after the close on Wednesday, as losses in the Technology, Basic Materials and Consumer Services sectors led shares lower.

• Oil was down Thursday morning over concerns about the ever-surging numbers of COVID-19 cases in India and after the U.S. released a draw of crude inventory. Crude oil supply data from the American Petroleum Institute on Wednesday showed a drop of inventories just by 400,000 barrels, far from the expected drop of 2.1 million barrels.

• At 12:30 (GMT) Unemployment Claims is expected to be announced. This report indicates the number of individuals who filed for unemployment insurance for the first time during the past week.

• At 14:30 (GMT) Natural Gas Storage will be announced. This measures the Change in the number of cubic feet of natural gas held in underground storage during the past week. The inventories are expected to rise to 74B mmBTU from the previous weeks 60B mmBTU.

• At 15:00 (GMT) Bank of Canada Governor Maclem is due to speak about the benefits of an inclusive economy at an online event hosted by the Bank of Canada.

US Indices yesterday:

• Dow Jones -1.99%
• S&P 500 -2.15%
• Nasdaq -2.67%

Sources: Investing.com, forexfactory.com

The original content of this Market Update is done in the English language. Any other language translation is provided for the sake of convenience. In case of any inconsistencies between the original English version and any other language, the original English version shall prevail.

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