Market Wrap: Stocks, Bonds, Commodities
The Dow hit a record intra-day high but the big tech stocks that have led Wall Street to scale successive peaks over the past year fell, with the Nasdaq closing down 2.41%. The Nasdaq is now down 10.6% from its Feb. 12 record close, or more than a 10% slide the market considers a correction.
The Dow Jones Industrial Average rose 306.14 points (0.97%) to 31,802.44, the S&P 500 lost 20.59 points (0.54%) to 3,821.35 and the Nasdaq Composite dropped 310.99 points (2.40%) to 12,609.16.
Asian stocks were set for a strong open on Tuesday, helped mostly by global recovery prospects and the passage of a $1.9 U.S. trillion stimulus bill, shaking off a mixed Wall Street session after a big downturn in tech shares.
MSCI’s index of Asia-Pacific stocks outside Japan down 0.46% to 859.25 levels. Australian index advances 0.47% to 6,771.20. Japanese Nikkei traded 0.99% higher to 29,027.90.
European stocks were declined on Tuesday, with the Stoxx Europe 50 Index slipped 0.11% to 3,760.50, Germany’s DAX fell 0.29% to 14,344.70 and France’s CAC lower 0.05% to 5,902.70 and U.K.’s FTSE 100 flat to 6,718.20.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield lost 0.90% to 1.084.
Oil prices rose on Tuesday on expectations of a recovery in the global economy after U.S. Senate approval of a $1.9 trillion stimulus bill and on a likely drawdown in crude oil inventory in the United States.
Spot Brent crude oil fell 0.68% to $64.63 per barrel. US West Texas Intermediate crude lost 0.44% to $67.96 a barrel.
The yellow metal traded 0.66% higher to 1692.30 dollars per ounce.
Market Wrap: Forex
The dollar held near a 3 1/2-month high against its rivals on Tuesday as higher bond yields and expectations of faster economic normalization from the pandemic in the United States put the U.S. currency at an advantage.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, gained 0.05% to 92.380.
The Euro US Dollar (EUR/USD) widely traded pair advance 0.15% today. This left the pairing trading around $1.18560.
The Japanese yen fell against the U.S. dollar on Tuesday as stock pushes higher. Today US/JPY rose 0.27% to 109.150 level.
Other commodity-related currency lower against the U.S dollar, AUD/USD flat to 0.76450 and NZD/USD fell 0.22% to 0.71110.
EUR/USD Intraday: Trend may reverse
Our pivot point is at 1.18860
Preferable Price Action: Take short positions above pivot level with targets at 1.18380 & 1.8080 in extension.
Alternative Price Action: Above pivot looks for further upside to 1.19330 & 1.19630.
Comment: Pair below its 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 produced
GBP/USD Intraday: Support at 1.38110
Our pivot point is at 1.38110
Preferable Price Action: Buy positions above pivot with targets at 1.38860 & 1.39260 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.37360 & 1.36960.
Comment: Price above its 55MA & 20MA 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 produced
USD/JPY Intraday: Resistance at 109.300
Our pivot point is at 109.300
Preferable Price Action: Sell position below with the target at 108.750 and 108.450 in extension.
Alternative Price Action: The upside breakout of pivot would call for 109.800 and 110.100.
Comment: price below 20MA 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: Support at 0.76460
Our pivot point is at 0.76460
Preferable Price Action: Buy Positions above pivot with targets at 0.76950 & 0.77250 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.76000 & 0.75700 as targets.
Comment: Pair 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 produced
CRUDEOIL Intraday: Trend downside
Our pivot point is at 65.80
Preferable Price Action: Below pivots sell Oil with 63.80 & 62.80 as targets.
Alternative Price Action: Buy crude above pivot with targets at 67.80 and 68.80 in extension.
Comment: Crude below its 20MA & 55MA and MACD in negative 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: Support at 1688.00
Our pivot point is at 1688.00
Preferable Price Action: Further upside to 1702.00 & 1710.00.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1673.00 and 1655.00.
Comment: MACD in positive territory and price above 20MA & 55MA.
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: Break resistance levels
Our pivot point is 31,760.00
Preferable Price Action: Take buy positions above pivot with targets at 32,100.00 & 32,250.00.
Alternative Price Action: Below 31,760.00 looks for further downside to 31,400.00 & 31,250.00.
Comment: Price above its 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