Copper futures traded sharply lower on Apr 30, undermining the recent bullish theme. This suggests that the rally between Apr 7 - 23 has been a correction. Key short-term resistance has been defined at $498.25, the Apr 23 high. A resumption of weakness would expose $436.00, the Apr 10 low ahead of $407.40, the Apr 7 low and key support. On the upside, a break of $498.25 is required to reinstate a bullish theme.
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A short-term reversal in S&P E-Minis last week highlights the start of a corrective cycle. The trend condition has been oversold following recent weakness and the move higher is allowing this set-up to unwind. Initial resistance to watch is 5524.91, the 20-day EMA. Resistance at the 50-day EMA is at 5737.71. On the downside, key support and the bear trigger has been defined at 4832.00, the Apr 7 low.
SX7E (20th June) 180c, bought for 4.25 in 12k vs 3.84k at 168.00.