By Fast Brokers – The S&P futures are off intraday lows and are fighting to stay above their highly psychological 1200 level as equities battle disappointing GDP data and more negative news concerning Goldman. Advance GDP printed a couple basis points below analyst expectations, adding onto yesterday’s discouraging unemployment claims release. However, the Chicago PMI and UoM Consumer Sentiment releases both topped estimates, smoothing out negativity stemming from other economic data. Hence, we can deduct that a predominant amount of the S&P’s weakness this morning stems from the Goldman news. The SEC announced it is investigating Goldman’s trading arm, the second investigation announced this month as America’s iconic financial firm comes under the crosshairs of regulators. Goldman shares are feeling the heat and are in the red by over -8% right now. However, the Goldman news may just have a temporary impact on the equity markets and attention should turn right back to the EU soon. Although an EU resolution for Greece is still up on the air, we can assume some form of action is pending. Investors are taking a wait and see approach to determine whether the announced austerity/financial aid processes will be deemed sufficient to help Greece avoid a fiscal collapse. Meanwhile, investors should keep an eye out for China. The SCI continues to drift below its 3000 mark the China will slip in manufacturing PMI data during tomorrow’s May holiday. Therefore, China could return to the news wires soon and we wouldn’t be surprised to hear Yuan chatter pick up again. The U.S. will release its manufacturing PMI figure on Monday as well, meaning U.S. equities may be rather active as the trading week kicks off. In the meantime, the highly psychological 1200 area could prove to be a highly contested battle ground.
Resistances: 1204.36, 1206.97, 1209.81, 1212.87, 1215.49
Supports: 1201.30, 1199.12, 1197.37, 1194.97, 1192.13, 1190.61
Psychological: 2010 highs, 1200
(click chart to enlarge)
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