For the bulls, important resistance points exist at 260.48 derived from the April 05 top, also at the yearly high of 278.57 and finally at the 302.72 bottom derived from the January 2020 inside resistance level.
For the bears, support levels exist at 248.90 which is the 0.50 Fibonacci retracement level, also at 218.99 which is the latest bottom, and at 191.48 derived from the yearly low on January 27th.
• It’s a busy day ahead on the economic data front, with a lot of stats from the U.S in focus. The main focus is on US Core PCE Price Index, Goods Trade Balance, Chicago PMI results and Inflation figures.
• U.S. stocks advanced slightly on Thursday, as data showing improvement in the labor market helped bolster expectations in the economic recovery and spurred a minor rotation towards stocks seen as more likely to benefit from the rebound.
The Dow Jones Industrial Average rose 141.59 points, or 0.41%, to 34,464.64, the S&P 500 gained 4.89 points, or 0.12%, to 4,200.88 and the Nasdaq Composite dropped 1.72 points, or 0.01%, to 13,736.28.
• Federal Reserve Bank of Dallas President Robert Kaplan on Thursday appeared to add a new pillar to the case he is building for reducing the U.S. central bank’s support for the economy, saying that the labor market is already tighter than many appreciate. The factors crimping labor market supply “may not be particularly susceptible to monetary policy,” he and several of his economists wrote in a blog on the Dallas Fed’s website.
• With its latest $1,900 adventure lasting about 24 hours in all, gold returned Thursday to the directionless waddling that has become its second nature since the start of the year.
Gold for June delivery on New York’s Comex settled the day’s trade down $5.30, or 0.3%, at $1,898.50. On Wednesday, it hit a session high of $1,913.25. That was its loftiest level in 4-½ months since its return on Tuesday to the $1,900 level the first time since Jan. 8.
• Oil prices gained another 1% Thursday, rising for a fifth straight trading day as traders put concerns about a potential supply hike from Iran on the backburner to focus on a surge in near-term fuel demand expected from the oncoming U.S. summer driving season.
West Texas Intermediate crude for July delivery, the benchmark for U.S. oil, settled up 64 cents, or 1%, at $66.85. WTI has risen more than 5% on the week so far. Brent crude for July delivery, which acts as the global benchmark for oil, settled up 33 cents, or 0.5%, at $69.20. Brent is more than 4% on the week.
• At 12:30 (GMT) US Core Price Index figures will be announced. The indicator measures the change in the price of goods and services purchased by consumers, excluding food and energy.
• At 12:30 (GMT) US Goods Trade Balance will be posted. This indicator measures the Difference in value between imported and exported goods during the reported month.
• At 13:45 (GMT) US Chicago Purchasing Managers' Index (PMI) is due. This is a survey of around 200 purchasing managers in Chicago which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.
• At 14:00 (GMT) US revised University of Michigan (UoM) Consumer Sentiment will be announced. This calculates the percentage that consumers expect the price of goods and services to change during the next 12 months.
US Indices yesterday:
• Dow Jones +0.41%
• S&P 500 +0.12%
• Nasdaq -0.01%
Sources: Investing.com, forexfactory.com.