U.S indexes are trading up as investors anticipate today’s FOMC minutes and an OPEC meeting on Thursday

U.S stocks are trading higher today as investors look toward minutes from the latest FOMC meeting. Most analysts are expecting a rate hike in June, and will look to comments for clues around policy leanings and future activity. On Thursday, a long-anticipated OPEC meeting will take place in Vienna. The consensus amongst observers is that the global production cut agreements struck between both OPEC and non-OPEC countries last November will be extended.

The DJIA is currently up 0.15%, or 31.30 points, at 20,969. The Nasdaq-100 is up 0.18% at 6,150 and the S&P 500 is currently trading at 2,400 which is up 0.08% from the open.

Using the ^GSPC symbol to analyze the S&P 500, our 10-day prediction window shows  overall negative directions. Today’s positive vector figure of -0.30% moves to -0.71% in the next three sessions. Today’s support and resistance is 2,376.01 (± 3.63) and 2,398.42 (± 3.67), respectively. The predicted close today is 2,388.63.   

Oil

Crude oil markets are seeing choppy trading today as investors are waiting for the results of Thursday’s OPEC meeting in Vienna. Most observers are under the assumption that the global production cut agreement, which was struck last November, will be extended for nine months. Earlier today, the U.S Energy Information Administration reported a drop of 4.4 million barrels in crude oil supplies for the week ending May 19.  West Texas Intermediate for June delivery is currently priced at $51.36 per barrel, down 0.43% from the open.

Looking at USO, a crude oil tracker, our 10-day prediction model shows initial downward movement followed by positive corrections. The fund is currently trading at $10.56, which is down 0.71% from the open. Today’s prediction sees support at $10.41 (± 0.10) and resistance at $10.76 (± 0.10). The predicted close for today is $10.51. Vector figures show -0.21% for today, but reverse to +1.42% within four trading sessions. All vector figures are based on today’s market conditions.  

Gold

The price for June gold is currently down 0.31% at $1,252.20 a troy ounce. The downward pressure can be attributed to expectations of Fed rate hike being confirmed. These higher interest rates will strengthen the U.S. dollar- the currency in which the non-fiat asset is priced. When the U.S. dollar is strong, gold is less attractive to investors holding foreign currencies. Because gold does not produce a yield, it becomes less attractive when compared to other higher-yielding assets which would benefit from a rate hike.

Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window consistent downward movement. The gold proxy is currently trading at $119.27, up 0.11% from the open. Today’s predicted low is $118.77 (± 0.29) and the predicted high is $120.40 (± 0.30). The predicted close today is $118.89.  

Treasuries

Treasury yields were slipping today but are starting to recover, as investors look forward to the release of minutes from the May FOMC meeting. Although a June rate hike is widely expected, there seems to be some disagreement among Fed officials about the feasibility of two further rate hikes.  The yield on the 10-year Treasury note is currently up 0.38% at 2.30%. Bond prices and yields are inversely related to one another.

Using the iShares 20+ Year Treasury Bond ETF (TLT) as a proxy for bond prices in our Stock Forecast Tool, we see slight, consistent positive signals in our 10-day prediction window. Relative to current conditions, we see vector figures moving from -0.01% today to +0.08% in three trading sessions.  The ETF is currently priced at $122.86- up 0.26% from the open. The predicted close today is $122.99 with a low and high of $122.54 (± 0.30) and $124.05 (± 0.30), respectively.  

Volatility

The CBOE Volatility Index (VIX) is currently down 2.33% at 10.47, but is predicted to climb steadily. The predicted close today is 11.55 with a positive vector of +5.79%. Today’s predicted lows and highs are 10.47 (± 0.33) and 12.16 (± 0.38), respectively.