Market Overview 17th April 2012

Tuesday, 17th April 2012. Stock index retrace for the first time yesterday amid recent weakness on regional market. Other news to follow.

"-U.S. stocks closed with a gain for the Dow Jones Industrial Average but losses for the other indexes. Tech stocks, particularly Apple Inc.AAPL -4.15% , dragged on the S&P 500 and Nasdaq Composite. Boosted by strong retail sales data and gains for Exxon Mobil Corp.XOM +1.28% , the Dow average ended up 71.82 points, or 0.6%, at 12,921.41. The S&P 500SPX -0.05% fell 0.69 point, or 0.1%, to 1,369.47. Tech shares weighed the most, falling 1.2%. Utilities led. The Nasdaq Composite COMP -0.76% fell 22.93 points, or 0.8%, to 2,988.40. "


"-Asia markets pared gains but ended firmly in positive territory on Friday, after data showing China’s economy cooled more than expected in the first quarter triggered fresh hope for more policy support. Hong Kong’s Hang Seng Index HK:HSI -0.44%  climbed 1.8% and Japan’s Nikkei Stock Average JP:100000018 -1.74%  added 1.2%, while Australia’s S&P/ASX 200 indexAU:XJO -0.49%  put on 1% and South Korea’s Kospi KR:0100 -0.81%  gained 1.1%. China’s Shanghai Composite CN:000001 -0.09%  edged up 0.4%. China’s economic growth slowed by more-than-expected to 8.1% in the first quarter from the same period a year earlier, official data released Friday showed."


"-Oil futures ended Monday’s seesaw session modestly higher, as investors parsed news of a possible pipeline reversal weeks earlier than planned and after weekend talks on Iran’s nuclear program eased supply tensions. Crude for May delivery CLK2 +0.34%  advanced 10 cents, or 0.1%, to end at $102.93 a barrel on the New York Mercantile Exchange."


"-Soybean futures were the downside price leader in the grain markets today, finishing mostly 11 to 16 3/4 cents lower, with nearby contracts leading losses. Meal and soyoil saw strong spillover pressure, with soyoil leading losses in the product markets. Early weakness was tied to strength in the U.S. dollar index, but even as the dollar weakened, pressure on soybean futures intensified as traders were focused on lightening risk and taking profits. "

FKLI- Congesting At The Top. 

Stock index slide down after rising for the past two session last week while index futures ended up in premium mode. The equity market is hovering on sideways mood again, and this time they are less decisive than ever. Investors will kept guessing whether the U.S market earnings results will give the expected boost for the market to surge or it will go the other way round if the earning results are poor. Technically, we are going to see index futures to see-sawing within the support and resistance level describe above. Do not expect something great as there are likely 5 to12 favourable points to reap from one position on this sideways market. For today, support is likely located at 1,591 level while resistance is pegged at 1,604 level.

Daily Pivot Point
R2= 1604
R1= 1601
S1= 1591
S2= 1585

FCPO- Dropping Close To Long Term Support Trend Line.

Palm oil futures went down again for the third time yesterday as Bulls are still prefer to take some breather after it rose to 13-months high. The benchmark July retrace about  RM xx  to xx,   . Market is filled with huge Selling pressure when it open gap down in the morning session but manage to slowed down the Sell-down in the afternoon session when some bargain hunting occur at low price. Technically, market has signal for swift correction when it suddenly breached below the third support trend line which located around 3,530 level last Friday. Moreover, the lower high and lower low formation somehow confirmed yesterday price action. Hell will break lose if the benchmark July could breach below the long term support trend line shown on daily chart above located around 3,450 level. Traders are advised to be cautious as we does not know how deep this correction will take us to as death cross on MACD has confirmed occur for the first time in three weeks. It will be a long recovery and big hurdle on the way up as the benchmark July need to rise above 3,530 in order to revive it preceding up-trend.

Daily Pivot Point
R2=3521
R1=3504
S1=3464
S2=3441
 Disclaimer: Information and opinions contained in this report are for educational purposes only. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness.