Market Wrap: Stocks, Bonds, Commodities
The S&P 500 registered its biggest daily percentage gain since Nov. 24 on Monday after a steep sell-off last week, and technology-related shares led the advance, while a move by retail traders into silver drove up mining shares.
Global shares bounced and silver markets surged on Monday as retail investors expanded their social media-fueled battle with Wall Street to drive the precious metal to an eight-year high.
The Dow Jones Industrial Average rose 229.29 points (0.76%) to 30,211.91, the S&P 500 gained 59.62 points (1.61%) to 3,773.86 and the Nasdaq Composite added 332.70 points (2.55%) to 13,403.39.
Asian markets looked set for a modestly firmer start on Tuesday as global markets faced another chaotic week, with retail investors expanding their duel with Wall Street into commodities and driving up the price of silver.
MSCI’s index of Asia-Pacific stocks outside Japan rose 1.27% to 913.27 levels. Australian index advances 1.49% to 6,762.60. Japanese Nikkei traded 0.97% higher to 28,362.17.
European stocks were advance on Tuesday, with the Stoxx Europe 50 Index gained 1.54% to 3,5155.35, Germany’s DAX rose 1.27% to 13,794.20 and France’s CAC higher 1.69% to 5,555.84 and U.K.’s FTSE 100 advance 0.61% to 6,505.35.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield jumped 2.11% to 1.100.
Oil prices rose around 1% on Tuesday after major producers showed they were cutting crude output in line with their commitments on restraint, supporting a market thrown out of kilter by weak demand during the coronavirus pandemic.
Spot Brent crude Oil up 1.21% to $57.01 per barrel. US West Texas Intermediate crude advance 1.25% to $54.23 a barrel.
The yellow metal traded 0.66% lower to 1849.50 dollar per ounce.
Market Wrap: Forex
The dollar hovered near a seven-week high on Tuesday, largely benefiting from a euro selloff overnight after coronavirus lockdowns choked consumer spending in Europe’s biggest economy.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell 0.24% to 90.808.
The Euro US Dollar (EUR/USD) widely traded pair gained 0.24% today. This left the pairing trading around $1.20870.
The Japanese yen fell against the U.S. dollar on Tuesday as stock pushes higher. Today US/JPY flat to 104.870 level.
Other commodity related currency higher against U.S dollar, AUD/USD gained 0.13% to 0.76300 and NZD/USD advance 0.48% to 0.71910.
EUR/USD Intraday: Trend downside
Our pivot point is at 1.20830
Preferable Price Action: Take Short positions below pivot level with targets at 1.20550 & 1.20350 in extension.
Alternative Price Action: Above pivot looks for further upside at 1.21110 & 1.21310.
Comment: Pair below its 55MA & 20MA an RSI below 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
GBP/USD Intraday: Resistance at 1.36940
Our pivot point is at 1.36940
Preferable Price Action: Sell positions below pivot with targets at 1.36600 & 1.36350 in extension.
Alternative Price Action: The price above pivot would call for further upside to 1.37270 & 1.37530.
Comment: Price above its 55MA and RSI below 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
USD/JPY Intraday: Major trend on the upside
Our pivot point is at 104.940
Preferable Price Action: Buy position above with the target at 105.160 and 105.320 in extension.
Alternative Price Action: The downside breakout of pivot would call for 104.710 and 104.550.
Comment: price above 20MA & 55MA and MACD in positive territory.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
AUD/USD Intraday: In consolidation zone
Our pivot point is at 0.76290
Preferable Price Action: Sell Positions below pivot with targets at 0.75930 & 0.75730 in extension.
Alternative Price Action: Above pivot looks for further upside with 0.76650 & 0.76850 as targets.
Comment: Pair below its 20MA & 55MA and RSI below 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
CRUDEOIL Intraday: Break resistance level
Our pivot point is at 53.80
Preferable Price Action: Above pivots buy Oil with 54.60 & 55.10 as targets.
Alternative Price Action: Sell crude below pivot with targets at 53.00 and 52.50 in extension.
Comment: Crude above its 20MA & 55MA and MACD in positive territory.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
XAU/USD Intraday: Resistance at 1857.70
Our pivot point is at 1857.70
Preferable Price Action: Further downside to 1846.00 & 1840.10.
Alternative Price Action: If the price gives an upside breakout of a pivot, then the price extends to 1869.60 and 1875.50.
Comment: MACD in negative territory and price below 55MA & 20MA.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced
Dow Jones Intraday: Support at 30,200.00
Our pivot point is 30,200.00
Preferable Price Action: Take buy positions above pivot with targets at 30,500.00 & 30,700.00 extension.
Alternative Price Action: Below 30,200.00 looks for further downside to 29,910.00 & 29,710.00.
Comment: Price above its 20MA & 55MA and RSI above 50 levels.
Green Lines Indicate Resistance Levels – Red Lines Indicates Support Levels
Light Blue is a Pivot Point – Black represents the price when the report was produced7