Binary U.S. stock futures fell, indicating that the S&P Index will extend yesterday’s drop as Japan posted a wider-than-expected trade deficit and investors awaited the minutes of the last Federal Reserve meeting and data on house purchases. The September S&P futures retreated 0.3 percent to 1,408.1 at 7:21 a.m. in New York. Binary U.S. stocks fell yesterday, while S&P failed to remain above a four-year high, as a slump in technology shares overshadowed optimism euro-area leaders will make progress in resolving the region’s crisis. Contracts on the Dow Jones Industrial Average slipped 30 points, or 0.2 percent, to 13,169 today.
Japan’s trade deficit was 517.4 billion yen ($6.5 billion) in July as Europe’s sovereign-debt crisis and a slowdown in China dragged down exports, data released by the Finance Ministry showed. That compares with a revised 60.3 billion yen surplus in June and the median forecast of a 270 billion yen deficit in a Bloomberg News survey of 28 analysts.
Today’s US new home sales are expected to be around 4.52 million on yearly basis, which eventually would be a rise in the reading of the indicator compared to June’s number of 4.37 million. Tomorrow we will see the new home sales number for July, which most economists expect to be 365 thousand, according to the latest surveys among economists.
The FED will consider circumstances in the economy and financial stability to decide whether it needs to step up monetary easing. At 19 GMT the FOMC Meeting Minutes will give us more insight on the expectations and intentions of the world’s most influential central bank.
Oil traders should keep a close eye on the Crude Oil Inventories data, due half an hour later than the New Home Sales at 15:00 GMT. The forecast is 0.1 million barrels and if the reading is higher than that, binary investors should buy put options, and if it is lower they should bet on decline using put options and touch down options.
The Eurozone’s currency is declining versus the greenback during the European trading session. The current market price is just at a major support level, defined by a mid-term high in the first third of August at 1.2440, which was broken and now should be considered a support. The sharp rally that started in the beginning of the week is now pulling back below the 20-period exponential moving average and closing even the 50-period EMA. This suggests that probably bulls will come in and hold the price for a while and maybe push it back to yesterday’s high at 1.2487. In case the bulls can’t keep the trend up anymore, the next stop to the downside is expected to be 1.2385.
The most watched US index is falling in the recent hours and is trading below the current resistance level at 1412. The moving averages with 20 and 50 periods are sloping down and are above the price, confirming that although the trend in medium term is bullish, in the current market situation bears are in control after the climactic bull rally to 1426. Support zone of mid-term rank is seen between 1400-1402 and since currently there are no signs of the bear momentum being put to a halt, binary investors should wait for the market to drop closer to it.
The precious metal is in healthy bull trend that reached a new high today at 1645. The 20-period EMA was touched after a lot of trading way above it and immediately launched the price back to test the previous extreme. Support is located at 1635, making it a wise buy for binary investors and speculators. The trend is always your friend and currently the gold market is very suitable for trend followers.