S&P 500; US Indexes Fundamental Forecast – May 26, 2016

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Published: May 25, 2016, 17:07 UTC

U.S. stock indices continued their bullish rampage on Wednesday as investors reacted to higher oil prices and overseas news regarding Greece. For a second

U.S. stock indices continued their bullish rampage on Wednesday as investors reacted to higher oil prices and overseas news regarding Greece.

For a second day, European stocks started the rally by setting a positive tone before the official U.S. opening. The German DAX closed up nearly 1.5 percent. This move was supported by the news that the Eurogroup ministers had decided to offer Greece some debt relief. In their own words, the finance ministers called the accord a “breakthrough decision”. Greece also won a provisional commitment from the IMF to return to taking part in the bailout for Athens.

June E-mini Dow Jones Industrial Average futures rallied about 150 points higher, with Goldman Sachs contributing the most to the gains.

June E-mini S&P 500 Index futures were up 13.00 points, or 0.63% to 2084.25. Materials were the big gainer, followed closely by energy and financials. The oil and gas drilling sub-sector traded more than 4 percent higher.

The NASDAQ Composite gained 26 points, or 0.54 percent, to 4,887.00.

FxEmpire provides in-depth analysis for each asset we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

Today’s economic releases:

Cur.	Event	Actual	Forecast	Previous
USD	API Weekly Crude Oil Stock	-5.137M	-3.300M	-1.140M
USD	API Weekly Cushing Crude Oil Stock	-0.189M	-0.950M	0.508M
NZD	Trade Balance (MoM) (Apr)	292M	60M	117M
NZD	Trade Balance (YoY) (Apr)	-3,660M	-3,940M	-3,380M
AUD	Construction Work Done (QoQ) (Q1)	-2.6%	-1.5%	-3.6%
EUR	GfK German Consumer Climate (Jun)	9.8	9.7	9.7
EUR	German Business Expectations (May)	101.6	100.8	100.4
EUR	German Current Assessment (May)	114.2	113.2	113.2
EUR	German Ifo Business Climate Index (May)	107.7	106.8	106.6
EUR	EU Finance Ministers Meeting
USD	Goods Trade Balance (Apr)	-57.53B	-60.10B	-56.90B
USD	FOMC Member Harker Speaks
USD	Services PMI (May)	51.2	53.1	52.8
CAD	Interest Rate Decision		0.50%	0.50%
USD	Crude Oil Inventories	-4.226M	-2.450M	1.310M
USD	Cushing Crude Oil Inventories	-0.649M		0.461M
USD	FOMC Member Kashkari Speaks
USD	FOMC Member Kaplan Speaks
AUD	Private New Capital Expenditure (QoQ) (Q1)		-3.0%	0.8%

Upcoming Economic Events that you should be monitoring:

Thursday, May 26, 2016

Cur.	Event	Actual	Forecast	Previous
GBP	BBA Mortgage Approvals		44.8K	45.1K
GBP	Business Investment (QoQ) (Q1)		0.1%	-2.0%
GBP	GDP (YoY) (Q1)		2.1%	2.1%
GBP	GDP (QoQ) (Q1)		0.4%	0.4%
USD	FOMC Member Bullard Speaks
USD	Core Durable Goods Orders (MoM) (Apr)		0.3%	-0.2%
USD	Durable Goods Orders (MoM) (Apr)		0.5%	1.3%
USD	Initial Jobless Claims		275K	278K
AUD	RBA Assist Gov Debelle Speaks
USD	Pending Home Sales (MoM) (Apr)		0.6%	1.4%
USD	FOMC Member Powell Speaks
AUD	RBA Assist Gov Debelle Speaks
JPY	National Core CPI (YoY) (Apr)		-0.4%	-0.3%
JPY	Tokyo Core CPI (YoY) (May)		-0.4%	-0.3%

Government Bond Auctions

May 25 11:03 Sweden Sek 1bn 3.5% 2022 & Sek 3bn 1% 2026 bonds

May 25 11:05 Norway Holds bond auction

May 25 11:30 Germany Eur 1bn 2.5% Jul 2044 Bund

May 25 19:00 US Holds 5Yr Notes Auction, 2Yr FRN

May 26 11:10 Italy Announces details of bond auction

May 26 11:10 Italy Holds Zero-coupon/BTPei auction

May 26 17:20 Sweden Details of I/L auction on Jun 02

May 26 19:00 US Holds 7Yr Notes Auction

May 30 11:10 Italy Holds bond auction

Jun 01 10:30 Denmark Holds bond auction

Jun 01 11:30 Germany Eur 4bn Apr 2021 Bobl

Jun 01 11:30 UK 1.5% 2021 Gilt

Jun 01 17:20 Sweden Announces details of bond auction on Jun 08

Jun 02 10:30 Spain Holds bond auction

Jun 02 11:03 Sweden Holds I/L bond auction

Jun 02 11:50 France Holds bond auction

About the Author

James Hyerczykauthor

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.