Daily Market Review: Major US Indices Higher

US Stock Market
Major US indices gained following stronger than expected Pending Home Sales data. Energy and technology stocks led the gains. The S&P 500 closed at a new high, gaining by 0.72%; the NASDAQ gained by 0.85%; and the Dow Jones gained by 0.72%. Technically, the Dow Jones broke away from the 14,595-14,685 channel limits, resuming its uptrend. The Dow Jones is expected to retest the 14,700 support level before rising towards the 14,820 resistance level.

IBM
IBM (IBM) gained by 2.49% as US indices responded positively to better than expected housing data. IBM has announced that it is entering the cloud technology section, introducing the IBM SmartCloud. Technically, according to the 1-hour chart, IBM is trading in an ascending channel, rising towards the closure of the gap it made on April 19. Should IBM manage to cross above the $206 gap resistance level, it is expected to keep climbing towards the $215 resistance level.
IBM - Last: 198.61

Resistance 202,50205,80207,50
Support 197,50195,00192,70


US Dollar (USD)
The US Dollar fell versus most of the major currencies as investors’ risk appetite grew following stronger than expected New Home Sales in the US and the formation of a new Italian government, the latter of which lowered uncertainty in Europe. The Monetary Policy Committee will meet on Tuesday and Wednesday before releasing its interest rate decision. The MPC is expected to keep the current stimulus plan unchanged in order to spur growth. Today, CB Consumer Confidence is expected to come out at 60.8 versus 59.7 previously, the Chicago PMI at 52.5 versus 52.4 previously.

Gold
Gold gained slightly during Monday’s session as investors awaited the European Interest Rate decision; the ECB will either cut the interest rate in order to spur growth or leave it unchanged at 0.75%.Technically, Gold is consolidating upwards towards the 1,480 resistance level. A break above the resistance level could send Gold rallying towards 1,500; a break below the trend line could send Gold back towards the 1,450 support level.
Gold – Last: 1473

Resistance 1.4781.4831.486
Support 1.4651.4601.450


Crude Oil
Crude Oil gained as investors turned towards riskier assets following encouraging economic data from the US and news of a political solution in Italy. Technically, Crude prices rose following the negative divergence that appeared on the 4-hour chart. Crude is near the $94.80 resistance level and slightly overbought according to the 4-hour RSI, suggesting a possible retracement towards $92.50.
Crude Oil – Last: 94.35

Resistance 94,8095,3095,70
Support 93,8093,4092,75


Euro (EUR)
The euro gained versus the major currencies after the announcement of a new government in Italy raised investors’ optimism. Technically, the EUR/USD is still trading in a channel between the 1.30 support level and the 1.31 resistance level; the currency pair is now located near the top part of the channel. Selling at the current level with a target at 1.30 is preferred. Should the EUR/USD break above 1.3150, long positions are preferred. Today’s CPI is expected to come out at 1.6% versus 1.7% previously, the Unemployment Rate at 12.1% versus 12.0% previously.
EUR/USD – Last: 1.3085

Resistance 1,31001,31501,3200
Support 1,30451,30001,2950


British Pound (GBP)
The Pound finished the trading day unchanged versus the US Dollar after having been overbought (according to the 4-hour RSI). The major trend for the GBP/USD is bullish, but the pair is currently retracing towards the 1.54 level. Today, Net Lending to Individuals is expected to come out at 0.9B versus 1.5B previously, the M4 Money Supply at 0.4% versus -0.5% previously.
GBP/USD - Last: 1.5480

Resistance 1,55451,56101,5670
Support 1,54251,53901,5360