The failure to hold above the MA200 may signal a further sell-off. For the bears, support levels exist at 539.50 March 05 bottom, at 502.49 inside support from September 1st 2020 and at the Fibo 1.618 extension level at price 478.58.
A return above the MA200 could possibly reverse the bear trend. For the bulls important resistance levels found at 593.10 inside resistance formed from the March 29th low, also at 691.80 inside resistance from April 19th and finally at 780.00 formed from the April 14th latest top.
• There will be a small number of announcements today in the US market. The news announcements include event participations of FOMC members as well as Building Permits and Housing Markets Starts.
• Confidence among U.S. single-family homebuilders held steady in May despite worries over shortages of building materials, which are boosting prices and threatening to sideline first-time homebuyers from the market. The National Association of Home Builders/Wells Fargo Housing Market Index was unchanged at 83 in May. A reading above 50 indicates that more builders view conditions as good, below 50 as poor.
• Amazon.com, Inc (AMZN) is in talks to acquire MGM movie studio, which could give a significant boost to the latter’s entertainment portfolio, as per reports. MGM has a rich content catalog that includes James Bond films. The company also owns the Epix cable channel and it is the creator of popular television shows such as “Shark Tank,” Fargo,” and The Handmaid’s Tale.
• Gold rose to the highest in more than three months as concerns over the pace of a global recovery crept back in following a flareup in coronavirus cases in parts of Asia. Spot gold rose as much as 0.2% to $1,870.73 an ounce, the highest since Feb. 1, and was at $1,868.10 by 9:11 a.m. in Singapore. Silver, palladium and platinum all gained.
• Oil prices fell on Tuesday on fading fears of a prolonged outage of the largest U.S. fuel pipeline system, while India’s coronavirus crisis showed scant sign of easing, with a seven-day average of new cases at a record high. U.S. West Texas Intermediate (WTI) crude futures fell 45 cents, or 0.69%, to $64.47 a barrel at 0654 GMT, after gaining 2 cents on Monday.
• At 12:30 (GMT) US Building Permits are due to be announced. It's an excellent gauge of future construction activity because obtaining a permit is among the first steps in constructing a new building.
• At 12:30 (GMT) US Housing Starts will also be announced. This is the annualized number of new residential buildings that began construction during the previous month.
• At 16:30 (GMT FOMC member Bostic is due to deliver closing remarks at an online conference hosted by the Federal Reserve Bank of Atlanta.
US Indices yesterday:
• Dow Jones -0.16%
• S&P 500 -0.25%
• Nasdaq -0.38%
Sources: Investing.com, forexfactory.com, Benzinga.com.