Daily Market Analysis 05.04.2016

Daily Market Analysis 05.04.2016

This week the players will focus on the publication of the FOMC meeting minutes of the last meeting of the US Federal Open Market Committee, which was held on Wednesday at 21:00 GMT. The active growth of the US stock market last week was caused primarily due to statements of the Fed Chair Janet Yellen and the head of the Federal Reserve Bank of New York William Dudley, which had rather "pigeon" character. In particular, Ms. Yellen expressed concern about the global economic growth and said that further tightening of credit and monetary policies should be extremely cautious and gradual. Thus it reduces the likelihood of raising the federal funds rate at the next meeting on April 27 and, respectively, over a long period of easy money, which was going directly to the stock exchanges.

Considering the USA broad market index (S&P500) from the technical point of view, - overdue correction of the growth from mid-February is being visible. The graph also represents the divergence on the four-hour chart (indicated by purple in the figure) is clearly visible. This can potentially bring significant profit in the short positions.


Daily Market Analysis 05.04.2016

S&P,H4


Also extremely interesting is the situation in the oil market. Strong pressure on the quotes of "black gold" has a growing skepticism about the meeting of the largest producing countries in Doha on April 17, where it is planned to discuss freezing of production. Saudi Arabia refused to fix the quota if Iran wouldn’t support this program, and Russia on the contrary has increased production to a historic high of 10.9 million barrels per day. All the above factors make a very interesting short positions (sell positions) in the oil market. Technical picture on the May futures for Brent is as follows:


Daily Market Analysis 05.04.2016


Brent Oil, H1


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