European equities closed lower on yesterday session with investor sentiment restrained by a mixed earnings reports and the further deterioration of Greece’s economic outlook leading the ratings agency Standard & Poor’s to cut its credit rating to “CCC+” from “B-“.
Today on the economic agenda we will have the US Consumer Price Index (CPI) Year-over-year in March is expected to rise from 0.0% to 0.1% showing that inflation is kicking in and the Preliminary Reuters/Michigan Consumer Sentiment Index in April that is estimated to rise from 93 to 94 displaying that consumers are willing to spend money.
The Usa500 since the start of April rose 2.08% and is in a bullish phase change. Yesterday, the Usa500 initially fell but found enough buying pressure at 2088.50 to turn around but still closing in the red near the high of the day. The stochastic is showing a overbought market setting lower highs and price is making higher highs, signs that the upside may begin to get exhausted.
Expecting a downward move to a daily support at 2,035.25 on a break below a daily support at 2,078.50 (scenario 1).
Usa500 is a CFD written over S&P500 futures.