ECB Adds to Stimulus Program


Yesterday June S&P 500 futures advanced to their highest level since March 4 and NASDAQ futures hit their best levels since February 21.

However, today futures are lower after jobless claims in the U.S. came in a little higher than expected. Some of this bearish influence was offset by news that the European Central Bank increased its asset purchasing program by more than analysts had expected.

Jobless claims in the week ended May 30 were 1,887,000 when 1,790,000 were expected.

Stock index futures have been performing well in spite of a variety of old and new geopolitical concerns.



After being down for five days and making another low in the overnight trade, the U.S. dollar is higher today. Last week the U.S. dollar broke out to the downside and hit its lowest level since March 13.

The euro currency is higher after the European Central Bank at its regularly scheduled policy meeting today almost doubled its asset-buying program, adding EUR600 billion ($675 billion) to the EUR750 billion that it announced in March.

The central bank said the program that was initially due to end in December would continue until the end of June 2021.

As expected, the ECB also kept its key interest rate unchanged.

The Australian dollar is lower after a report showed retail sales in Australia fell 17.7% in April.



Futures were temporarily supported by the jobless claims report but are lower now.

The next Federal Open Market Committee meeting is scheduled for June 9-10. According to financial futures markets there is a 92.9% probability that the FOMC will leave its fed funds rate unchanged at zero to 25 basis points. Yesterday the probability was 97.1%. Also, there is a 7.1% probability of a 25-basis point increase at next week’s meeting.

This suggests that there is a growing belief that there will be some recovery in the economy later this year.




June 20 S&P 500

Support    3090.00     Resistance    3129.00


June 20 U.S. Dollar Index

Support    97.030       Resistance    97.650


June 20 Euro Currency

Support    1.11920     Resistance    1.12800


June 20 Japanese Yen

Support    .91550        Resistance    .92120


June 20 Canadian Dollar

Support    .73800        Resistance    .74300


June 20 Australian Dollar

Support    .6875           Resistance    .6942


June 20 Thirty Year Treasury Bonds

Support    176^0          Resistance    177^20


August 20 Gold

Support    1696.0         Resistance    1732.0


July 20 Copper

Support    2.4550         Resistance     2.5050


July 20 Crude Oil

Support   36.21             Resistance    37.13

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