Summary
Equity markets were boosted by a combination of strong US New Home Sales and solid Asian economic news. Investors were hopeful that the US economy has turned the corner and positive guidance from Fedex helped spark the markets. The S&P 500 Index rallied 12 points to close the trading session at 1115.
Tomorrow's Events
AUD
0:00
Australia Leading Index
May
.1%
EUR
6:00
German Consumer Confidence
August
3.6
3.5
USD
13:00
Case Shiller Housing Index
14:00
US Consumer Confidence
July
51
52.9
Trading Opportunities
SPX
131 stocks on the NYSE hit new 52 week highs as the S*P 500 broke through the 200-day moving average on better than expected guidance from Fedex and robust New Home Sales. New Home Sales increased 23.6% from the previous month to a seasonally adjusted annual rate of 330,000, according to the Commerce Department. Inventories fell, which is a hopeful sign. Economists surveyed had estimated sales would climb in June by 3.7% to 311,000. May sales fell 36.7% to a record 267,000, revised down from an originally reported 32.7% plunge to 300,000. The sharp drop followed buyers rushing to the market before the tax credit ended April 30, causing sales to soar in the spring. Year-over-year, sales in June were down 16.7%.
EUR/JPY
The Euro continued to grind higher, getting very close to the 113 resistance level against the Yen. The CFTC data shows that for the week ended July 20, speculative bets on a stronger US dollar were overall lower. Net short euro positions fell to -24,251 from -27,050 previously, Swiss franc net long positions rose to 15,113 from 14,590 previously. Investors are beginning to see stronger growth in the European economy, which could lead to a future rally in the Euro. The Euro is poised to break out against the Yen, and a close above 113.10 would lead to a test of resistance near 115.00.