Market Wrap: Stocks, Bonds, Commodities
Wall Street reversed course late Tuesday, with the S&P 500 and the Dow whipsawing to positive territory by the closing bell in a tug-of-war between stocks that thrived amid lockdowns and those that stand to benefit most from a reopening economy.
The Dow Jones Industrial Average rose 15.66 points (0.05%) to 31,537.35, the S&P 500 gained 4.87 points (0.13%) to 3,881.37 and the Nasdaq Composite fell 67.85 points (0.50%) to 13,465.20.
Asian major indices opened lower on Wednesday on concerns about rising interest rates and rich equity valuations and following a downdraft in U.S. and European overnight trading.
MSCI’s index of Asia-Pacific stocks outside Japan fell 1.70% to 911.80 levels. Australian index slipped 0.90% to 6,777.80. Japanese Nikkei plunged 1.61% to 29,617.60.
European stocks were mixed on Wednesday, with the Stoxx Europe 50 Index rose 0.16% to 3,695.10, Germany’s DAX advances 0.50% to 13,932.40 and France’s CAC flat to 5,780.44 and U.K.’s FTSE 100 down 0.57% to 6,590.65.
Benchmark 10-year U.S. Treasury down as demand for risky asset grow again, today 10-year bond yield fell 0.15% to 1.362.
Oil prices were lower on Wednesday after industry data showed a surprise build in US crude stocks last week as a deep freeze in the southern states curbed demand from refineries that were forced to shut.
Spot Brent crude Oil down 0.26% to $64.30 per barrel. US West Texas Intermediate crude lost 0.31% to $64.28 a barrel.
The yellow metal traded 0.07% lower to 1805.60 dollars per ounce.
Market Wrap: Forex
The dollar slipped to a three-year low against the British pound and fell against commodities currencies on Wednesday as investors increased bets that a global economic recovery will boost riskier assets.
Today, the U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, declined 0.13% to 90.050.
The Euro US Dollar (EUR/USD) widely traded pair higher 0.15% today. This left the pairing trading around $1.21650.
The Japanese yen fell against the U.S. dollar on Wednesday as stock pushes higher. Today US/JPY rose 0.40% to 105.660 level.
Other commodity-related currency higher against the U.S dollar, AUD/USD rose 0.07% to 0.79160 and NZD/USD gained 0.67% to 0.73890.
EUR/USD Intraday: Support at 1.21370
Our pivot point is at 1.21370
Preferable Price Action: Take Long positions above pivot level with targets at 1.21660 & 1.21860 in extension.
Alternative Price Action: Below pivot looks for further downside at 1.21100 & 1.20900.
Comment: Pair below 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
GBP/USD Intraday: Trend upside
Our pivot point is at 1.41420
Preferable Price Action: Buy positions above pivot with targets at 1.41950 & 1.42270 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.40880 & 1.40530.
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: Break resistance levels
Our pivot point is at 105.400
Preferable Price Action: Buy position above with the target at 105.690 and 105.850 in extension.
Alternative Price Action: The downside breakout of pivot would call for 105.110 and 104.930.
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: Support at 0.78890
Our pivot point is at 0.78890
Preferable Price Action: Buy Positions above pivot with targets at 0.79280 & 0.79480 in extension.
Alternative Price Action: Below pivot looks for further downside with 0.78510 & 0.78310 as targets.
Comment: Pair below its 55MA an RSI near 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 61.60
Preferable Price Action: Below pivots sell Oil with 60.40 & 59.70 as targets.
Alternative Price Action: Buy crude above pivot with targets at 62.80 and 63.50 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: Strong trend upside
Our pivot point is at 1802.00
Preferable Price Action: Further upside to 1812.70 & 1818.90.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1791.00 and 1784.50.
Comment: MACD in positive territory and price below 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: In consolidation zone
Our pivot point is 31,530.00
Preferable Price Action: Take sell positions below pivot with targets at 31,240.00 & 31,090.00extension.
Alternative Price Action: Above 31,530.00 looks for further upside to 31,800.00 & 31,950.00.
Comment: Price below its 55MA & 20MA 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 produced7