Good Morning Traders
Yesterday we saw another strong rally in the equity markets, and are we surprised? Not really. Over the last few weeks we have seen a lot an analysts trying to call a top of the market, but no news seems to be good news and markets continue to move higher. We saw the SPX trade above the 1594 and it looks as though 1600 is the next stop if the relative weakness in the USD continues. The trading day yesterday could be characterised by a total lack of volume and it was interesting for traders to see the morning momentum faded into the US close. As we noted yesterday all eyes will be on the ECB come Thursday and all of the Equity markets have largely priced in a rate cut, if Draghi does not deliver on this expect to see some panic selling across the board.
One of the biggest movers in yesterdays trading day was AAPL having its best day in over 3 months, it might be a bit early to call but I think there is a bottom in place and traders have begun to move money back into the tech giant as it now trades above its 50DMA. In the commodity market the USD weakness helped the commodity market pick up some gains with Gold, Silver and Brent all trading higher.

This morning we have seen the EURUSD pair give back some of its gains as the pair found soem significant resistance at the 1.31200 handle and now trades down below the 1.30800 handle, this USD strength is dragging the commodity market lower in morning trading. In terms of advice for today's session, we will be paying close attention to the Eurozone data due out during the course of the morning session, all in all the morning has been relatively quiet and we don't expect to see any aggressive swings until Thursdays decision, if anything we would favour a move to the downside coming into this meeting but we expect to see all equity markets confined in their immediate short term risk ranges.
As we all know, we start a new month tomorrow, 'May' and the 'sell in May and go away' psychology is bound to be on the back of some traders minds, we have come a long way in a short period of time and this could be seen as an excellent opportunity to lock in some profit and take some money off the table.

Happy Trading
@lowkeycapital