“First Look” directional planner — reprinted with permission from Beat the Dart

The Standard & Poor’s 500 index futures down 6.10 to 883.20, as the recession deepened with global trade off sharply — exporters like Germany, the euro zone’s biggest economy, badly hit. In the first quarter, Germany’s economy shrank 3.8 percent as demand for its high value goods, such as cars and machinery, collapsed. The first honest report without the ‘green shoot” noise.

Indeed, weak U.S. retail sales data, which was reported earlier this week showed American consumers — one of the engines of world growth — are not ready to spend again. The key problems – deleveraging, higher unemployment, reduced buying power and contracting fixed asset values.

Oil prices below $59 a barrel in Asia as signs of a weak U.S. economy led investors to mull whether this month’s crude rally was justified. Benchmark crude for June delivery was up 11 cents at $58.73; the contract climbed 60 cents overnight.

In currencies, the dollar weakened to 94.87 yen from 96.08.

Maintain resistance of S&P 500 index at 934.79, and support at 832.39. Trade stocks on both sides, take profits, reduce laggards, and increase cash position.