Morning Call by Traders University

Yesterday the FTSE 100 closed down 27 points at 4,252 continuing the uncertain week. A mild support level is forming at 4,420, and resistance is being encountered at 4,300. It will be interesting to see if this level of resistance holds because it has proved to be a good level of support over recent weeks. Yesterday the Dow Jones rose 172.54 points (2.1%). The S&P 500 index rose 19.32 points (2.1%) to 920.26. Positive US corporate news in the Housebuilding and Retail sectors helped traders overlook the unexpected increases in US unemployment benefit claimants. Investors have been dissecting economic and corporate data for signs of whether the economy is starting to recover or whether a stock market rally that began in March was premature. There seems to be a strong underlying sentiment in the market. In the Forex market, huge volume makes even big interventions very hard. The SNB’s (CHF) intervention had a short lived effect last time, and this time is no different - the correction will come. No high news today. Enjoy!