Overnight Moves
Today, we looked at 19 charts; below are only some of them, but first, let’s have a look at the overnight moves. We are seeing a mix of red and green this morning. Oil has gained once again, and with this move higher, we need to keep in mind how this will put pressure on inflation numbers. Gold is pretty much flat, silver is down by 2.56%, with palladium losing just about 1%.
S&P 500 Index
We saw more buying during US hours and selling when the EU became more active, so it seems this is a trend this week that is likely to continue. Volatility remains high, so it is something to keep an eye on given the recent and ongoing events in the Middle East. We breached through most of the resistance levels, passing 6,870 and ending the day nicely at 6,876. If we see movement to the upside today, we would expect the next resistance level to be at 6,900, but at the time of writing, we have seen movement once again to the downside, which plays into the longer term trend of sideways movement that we have been seeing for some time. Support can be found at 6,850, 6,800, and 6,750.
Broadcom (AVGO)
Last night we had earnings from Broadcom, and it was well-received. With this good news, we saw some movement on tech stocks in general, which is a welcome change from the hits that sector recently took. On the earnings front, they managed to beat, coming out with numbers above all estimates, and they have now approved a new $10billion share buyback. All in all, with the recent gains this stock has received, we consider it one worth watching today.
Oil
We need to keep an eye on oil, given this new US-Iran conflict, as it’s disrupting oil supply globally, with one of the worlds major oil refineries that processes 7% of the resource worldwide. As we see the oil price rising, we have to remember that this puts a lot of pressure on inflation numbers. At the moment, we see no new headlines regarding the situation, and VIX is coming down a bit. Now let’s look at the price itself, which moved a lot yesterday but ended relatively flat, but this morning, we have already seen the price move between $76 and $78. In the next few days, if we hold above $78, we could very well reach $80.
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