Financial Markets Summary
Tuesday, April 26, 2016
- The price of oil has been battling to break through resistance. Last week’s high was $44.49 a barrel, which was recorded on Thursday. Oil closed back below $44 on Friday, closing at $43.75 a barrel. Yesterday’s trading saw oil’s price drop further closing under $43 a barrel.
- The strength in oil’s price since the February low has pushed it solidly into the area of resistance. The short term trend is higher, while the intermediate and long term trends remain lower. Further upside resistance in the short term resides at $45, $48 and $51 a barrel.
- New home sales for March were slightly below the February level and expectations. The pace of new home sales has now fallen for three straight months – the first such streak since 2011. Regionally, the West generated the decline with a 24% drop. Sales in the Northeast were steady, while sales increased in the Midwest and South.
- After two weeks of moderate gains, gold has experienced moderate declines during the last two weeks leaving the price of gold still in quite a struggle to hold short term support. A failure of support here could send gold down quickly from the current $1240 an ounce price to the $1140 area. The short term trend is higher for gold, while the intermediate and long term trend is lower.
- The Federal Open Market Committee concludes it two day meeting on Wednesday. A solid lineup of economic reports highlights this week with Durable Goods Orders, Gross Domestic Product and Chicago Purchasing Managers Index generating the most interest by economists and market analysts.
Sources: bankrate.com, bloomberg.com, briefing.com, Dow Jones News, Financial Times, finviz.com, Investor's Business Daily, marketwatch.com, seekingalpha.com, Thomson Reuters/First Call, U.S. Dept of Treasury, yahoo.com and individual company web sites and press releases.
Leonetti & Associates, LLC views or opinions are as of a certain date and subject to change without notice. The material contained herein is for informational purposes only and obtained from sources we consider reliable. We make no guarantee as to its accuracy or completeness. References to specific securities and industries/sectors should not be considered recommendations to buy or sell any security or advisory service. Past performance is not a guarantee of future results.