Daily Market Review – 26/05/2015

Greece crisis keeps pressure on markets

Daily Market Review – 26/05/2015

Asia indices continue to hover near highs, almost neutral, with many markets closed due to holiday.

European markets are going to open sharply lower, with Greece struggling to repay a loan to the International Monetary Fund (IMF). If it doesn’t receive financial aid by the end of this week, the Greek government will likely fail to pay wages and pensions.

US markets are slowly grinding higher on low volume. And it looks likely to remain unchanged in near future as we entering in summer mode, a period in which many traders leave their keyboards and go on vacation. SPY is building an upper-level base above previous resistance at 212.50. Resolution of this consolidation at 213.78 could lead us to new highs. Today’s macro statistics Durable Goods orders and Consumer Confidence release could act as a catalyst for change.

Apple (AAPL) is acting very predictably, after a breakup of the range at 127.60. It looks like we may see new highs, but timing is important. After a 5-dollar move it is better to wait for a new set-up rather than blindly jump on this train.

The banking sector is acting well, and will also gain from rising rates. Stocks of investment bank Goldman Sachs (GS) made this 8-dollar move after a break of the range and psychological pivot of 200. The stock is still acting bullishly but requires some pullback, 8 and 21 EMAs are acting like support (204.50, then 201.45). We are then faced with the trend line that has held intact since the beginning of this year.

The EUR/USD currency pair is following a break of the support zone at 1.10600 and forced buyers to cover their long positions. The next important level of support is at 1.08, where the rises started. The pair could find some buyers there and sellers will take a rest after big down move from highs 1.14645, But any signals must be patient before committing.