STRONGER THAN EXPECTED 7.6% increase in April US existing home sales was no surprise considering the solid rise in pending homes sales for Mar and Apr. The figures highlight the divergence between stabilising US macro fundamentals and deteriorating market sentiment. But nothing has changed from the Eurozone-aid perspective or a US regulatory stance towards US banks/derivatives. The 200-day moving average support for the Dow-30 (10267) and S&P500 (1102) has now become an immediate resistance for the indices after having served as a support.EURCHF retraces more than 38% of the 600-pip post-intervention bounce from 1.4000 to 1.4583) as EUR comes under broad pressure and CHF rallies from stabilizing risk positioning. 1.4290 & 1.4230 emerge as the next support level in the absence of the SNB.
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