This week will be a roller coaster ride as a barrage of U.S. economic numbers roll out. The S&P closed lower today with no technical damage done perhaps as a result of a slip in pending home sales. Consumer Confidence numbers are due out tomorrow however we can expect that stocks, bonds and currencies will be range bound until the FOMC meeting. If Bernanke's testimony continues to be a repeat of his past song and dance without any negative interpretation by the markets we suspect more range bound activity into the monthly jobs numbers on Friday. With earnings season still in full swing individual stocks with numbers out this week will certainly march to the beat of their own drums, however all things considered the general stock market will remain overbought and trending higher until the "other shoe drops" and surprises traders and investors into a round of profit taking. Check out our weekly market forecast for our outlook on important support and resistance levels and possible turning points for U.S. and Canadian stocks, the bond market, currencies and commodities such as precious metals and oil. This market outlook is a great tool whether you are an experienced investor or would like begin to learn to trade the markets.
Canadian and U.S. investors have been enjoying a bullish ride as both stock markets have discounted any underlying concerns and continued the uptrend. Most notably the Toronto market has staged a neck wrenching snap back led largely by Canadian banks. Of notable importance is the rally in oil which has yet to look back. Precious metals have also finally come off of their lows. While the primary trend remains down, golds break above 1300 is offering gold bugs a glimmer of hope. We suspect a retracement higher after such a substantial sell off however there are several resistance levels in place that will hold the bulls back. Bonds continue to drift higher, but are subject to headline risks as are the precious metals. For important insight into key support and resistance levels and possible turning points, watch this weeks Market Forecast:
Investors have continued to throw caution to the wind and both the U.S. and Canadian stock markets have been benefiting. While U.S. stocks are pushing beyond all time highs, the Canadian stocks (while off of the lows) are still under performing. With the volatility index (VIX) heading back down to the lows of the year it is clear that traders and investors are in "risk on" mode. Gold, silver and bonds are showing signs of a potential turn around while oil chops about at the highs of the year. Take a few moments to watch this weeks market forecast and learn to trade the markets with an understanding of where key support and resistance levels and important potential turning points are in all of the major asset classes. Play the video below.