Key Charts for Today

This is the most important chart for the equity indices today. Long ESM vs short USM (30 yr bond future). If this holds today it would be because the equity indices are failing again at the short term trend line in the asset allocation model. A breakout here would like see upside momentum shift in the indices.

The 2654 area in SPX will remain a key short term resistance level today and will be our first key to start the day. A settle above the 2017 yr end close of 2673.61 would likely be seen as a major positive at this point.

The Dow Jones Industrial Average has trend line resistance at 24689 (24700 in the June future). Remains negative below it for now.

DAX future needs a settle above the vwap from the year high for a chance at some upside momentum potential to test its 200 day moving average.

The US$ Index is weakening today and if EURUSD climbs above the short term .618 resistance we may see it as a headwind for the DAX and European indices which may weigh on the US.

With crude oil firming it will likely be the energy sector that would be a leader for the broader market. XLE would look positive with a settle above 68.65 area.