FREIGHT: Mideast Tanker Surplus Widens on Freight Rate Jump

• EUR/USD: May23 $1.1145-50(E1.1bln), $1.1180-85(E1.1bln), $1.1300(E1.2bln), $1.1330-50(E1.3bln), $1.1400(E1.1bln), $1.1495-05(E1.9bln); May27 $1.1400(E1.0bln)
• USD/JPY: May23 Y143.00($1.1bln), Y144.00($1.6bln), Y145.00($2.1bln); May26 Y150.00($1.8bln)
• USD/CAD: May23 C$1.4000-15($1.3bln); May26 C$1.4000-15($1.2bln)

• Stocks are mixed midmorning Wednesday - off lows with the tech heavy Nasdaq leading a bounce off weaker levels. Trading desks had cited this morning's higher bond yields partly triggered by fiscal developments (or lack thereof) as lawmakers continue to discuss Pres Trump's tax/spending bill.
• Investor sentiment flagged amid concerns the "big beautiful" tax & spending deal will increase the deficit an estimated $3.3 trillion over 10 years, weighing on equities as well as the Greenback (Bbg US$ index -5.70 at 1217.01).
• Currently, the DJIA trades down 337.6 points (-0.79%) at 42341.1, S&P E-Minis down 16 points (-0.27%) at 5944, Nasdaq up 49.6 points (0.3%) at 19192.42.
• Information Technology and Communication Services sectors led gainers late morning, chip makers gaining with Keysight Technologies +4.16%, Advanced Micro Devices +2.09%, Intel +1.55%, Super Micro Computer +1.54% and Corning +1.25%.
• Interactive media and entertainment buoyed the Communication Services sector with Alphabet +5.23%, Netflix +1.46%, Meta Platforms +1.37% and Match Group +1.34%
• Health Care and Utility sectors underperformed in the first half, pharmaceuticals weighing on the former with Moderna -5.75%, Bio-Techne -4.54% and Charles River Laboratories -3.38%. Elsewhere, UnitedHealth Group -4.19%, Quest Diagnostics -3.47%.
• Electricity and alternative energy stocks weighed on the Utility sector: AES -4.80%, NextEra Energy -1.94%, Xcel Energy -1.90% and Eversource Energy -1.80%.

• RES 4: 112-20+ High May 1 and a bull trigger  
• RES 3: 112-01+ High May 2  
• RES 2: 111-22   High May 7 and a key near-term resistance 
• RES 1: 110-24+ 50-day EMA
• PRICE:‌‌ 109-26+ @ 16:33 BST May 21
• SUP 1: 109-18+ Low May 15  
• SUP 2: 109-08   Low Apr 11 and key support
• SUP 3: 108-26+ 76.4% retracement of the Jan 13 - Apr 7 bull cycle
• SUP 4: 108-21   Low Feb 19  

Treasury futures traded lower again Wednesday to maintain the bearish tone. The recent breach of 110-01+, 76.4% of the Apr 11 - May 1 bull leg, strengthens a bearish theme and exposes key support at 109-08, Apr 24 low and a bear trigger. Key near-term resistance is at 111-22, the May 7 high. A move above this level is required to signal a potential reversal. First resistance is at 110-24+, the 50-day EMA.