For the bulls, important resistance levels exist at 249.00 which is the 161.8% Fibo extension level of the last downward move, and also at 283.50 where the 261.8% Fibo extension level resides.
For the bears, important support levels exist at 227.70 derived from the last top of June 7th , also at 193.20 from the bottom of the last downward move seen on June 16th , and finally at 189.25 which is derived from the inside support top from May 3rd that almost coincides with the MA50.
It is a very busy day on the economic calendar in the US and Canada. Stats expected on US ADP Non-Farm Employment Change, Chicago PMI, Pending Home Sales m/m and Crude Oil Inventories from the US. Canada will provide stats for GDP m/m, IPPI m/m and RMPI m/m. Pay attention to comments by Fed officials during the day that may provide market moving hints.
• Markets in the United States closed flat to higher on Tuesday as investors digested better-than-expected housing and consumer confidence data.
The Dow Jones and the S&P 500 both closed 0.03% in the green with the S&P hitting a record high. The Nasdaq 100 rose 0.33%. The best performer was Pinduoduo, whose shares rallied 6.92%. Moderna followed with a 5.17% jump after it said its COVID-19 jab is effective against several virus strains, including the Delta variant.
• U.S. consumer confidence increased in June to its highest level since the COVID-19 pandemic started more than a year ago, bolstering expectations for strong economic growth in the second quarter.
The Conference Board said on Tuesday its consumer confidence index jumped to a reading of 127.3 this month, the highest level since February 2020, from 120.0 in May. Economists polled by Reuters had forecast the index at 119.0. The survey places more emphasis on the labor market.
• U.S. single-family home prices in 20 key urban markets rose in April from a year earlier by the most in over 15 years, a closely watched survey said on Tuesday.
The S&P/Case Shiller composite index of 20 metropolitan areas gained 14.9% through the 12 months ended in April, the largest annual price increase since December 2005. A Reuters poll of economists had forecast a 14.5% increase.
• The U.S. Federal Reserve should taper in the least dramatic way possible when the time comes, Federal Reserve Bank of Richmond President Thomas Barkin said on Tuesday.
Barkin added he was undecided on whether the Fed should begin to wind down its purchases of mortgage-backed securities before Treasuries but that there was some downside to being too intricate.
Important Daily Events:
• At 12:00 (GMT) Federal Reserve Bank of Atlanta President Raphael Bostic is due to speak about regionalism at an event hosted by the Buckhead Coalition, in Atlanta. Audience questions expected.
• At 12:15 (GMT) US ADP Non-Farm Employment Change results expected to come out. This is an indicator measuring the estimated change in the number of employed people during the previous month, excluding the farming industry and government.
• At 12:30 (GMT) CAD GDP m/m is due. This is an indictor measures the change in the inflation-adjusted value of all goods and services produced by the Canadian economy.
• At 13:45 (GMT) US Chicago PMI is also 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 Pending Home Sales m/m coming up. This is a leading indicator of economic health because the sale of a home triggers a wide-reaching ripple effect.
• At 14:30 (GMT) US Energy Information Administration Crude Oil Inventories will be announced. This is a measure of the change in the number of barrels of crude oil held in inventory by commercial firms during the past week.
• At 17:00 (GMT) Federal Reserve Bank of Richmond President Thomas Barkin is due to speak at an online event hosted by regional Hispanic Chambers of Commerce. Audience questions expected.
US Indices Yesterday:
• Dow Jones +0.03%
• S&P 500 +0.03%
• Nasdaq +0.19%
Sources: Investing.com, forexfactory.com, breakingthenews.net