Market Wrap: Stocks, Bonds, Commodities
Stocks rallied to records on Wall Street Friday, and the Dow Jones Industrial Average closed above the 35,000 level for the first time, as the market continued to roar back from its short-lived swoon at the start of the week.
The S&P 500 index climbed 44.31 (1.00%) to 4,411.79 to top its prior all-time high, set early last week. The Dow Jones industrials rose 238.20 (0.70%) to 35,061.55, and the Nasdaq composite gained 152.39 (1.00%) to 14,836.99.
Asian shares struggled to rally on Monday as super-strong US corporate earnings sucked funds out of emerging markets and into Wall Street, where records were falling almost daily.
MSCI’s index of Asia-Pacific stocks outside Japan decline 2.43% to 827.89 levels. Australian index flat to 7,394.30. Japanese Nikkei traded higher 1.04% to 27,833.30.
European stocks were lower on Monday, with the Stoxx Europe 50 Index fell 0.70% to 4,080.99, Germany’s DAX down 0.64% to 15,568.30, and France’s CAC lost 0.62% to 6,528.20, and U.K.’s FTSE 100 slipped 0.45% to 6,996.25.
Benchmark 10-year U.S. Treasury fell as demand for safe risk grows again, today 10-year bond yields plunged 3.67% to 1.128.
Oil edged higher after eking out a modest weekly gain as investors assessed the outlook for demand amid a Covid-19 resurgence.
Spot Brent crude oil fell 1.31% to $72.53 per barrel. US West Texas Intermediate crude lost 1.44% to $71.05 a barrel.
The yellow metal is higher 0.36% to 1808.35 dollars per ounce.
Market Wrap: Forex
The dollar slipped against a basket of currencies on Monday as investor focus turned to this week’s Federal Reserve meeting, while cryptocurrencies jumped to their highest levels in weeks.
Today, the U.S. dollar index measures the greenback against a trade-weighted basket of six major currencies, fell 0.15% to 92.810.
The Euro US Dollar (EUR/USD) is a widely traded pair that advance 0.10% today. This left the pairing trading around $1.17800.
The Japanese yen lost against the U.S. dollar on Monday as the stock pushes lower. Today US/JPY slipped 0.27% to 110.230 level.
Another commodity-related currency lower against the U.S dollar, AUD/USD fell 0.27% to 0.73430, and NZD/USD slipped 0.15% to 0.69590.
EUR/USD Intraday: In a consolidation zone
Our pivot point is at 1.17760
Preferable Price Action: Take long positions above pivot level with targets at 1.1810 & 1.18290 in extension.
Alternative Price Action: Below pivot looks for a further downside to 1.17430 & 1.17230.
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
GBP/USD Intraday: Trend on the upside
Our pivot point is at 1.37260
Preferable Price Action: Buy positions above pivot with targets at 1.38250 & 1.38760 in extension.
Alternative Price Action: The price below pivot would call for further downside to 1.36260 & 1.35730.
Comment: Price 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
USD/JPY Intraday: Resistance at 110.340
Our pivot point is at 110.340
Preferable Price Action: Sell position below pivot with the target at 109.990 and 109.800 in extension.
Alternative Price Action: The upside breakout of the pivot would call for 110.670 and 110.860.
Comment: price below its 20MA 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
AUD/USD Intraday: Break support level
Our pivot point is at 0.73570
Preferable Price Action: Sell Positions below pivot with targets at 0.73120 & 0.72910 in extension.
Alternative Price Action: Above pivot looks for a further upside with 0.74040 & 0.74260 as targets.
Comment: Pair 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 produced
CRUDEOIL Intraday: Break support level
Our pivot point is at 71.53
Preferable Price Action: Below pivots sell Oil with 69.69 & 68.08 as targets.
Alternative Price Action: Buy crude above pivot with targets at 73.47 and 75.00 in extension.
Comment: Crude is below its 55MA & 20MA and MACD in the 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 1803.90
Our pivot point is 1803.90
Preferable Price Action: Further upside to 1816.20 & 1821.90.
Alternative Price Action: If the price gives a downside breakout of a pivot, then the price extends to 1792.30 and 1786.80.
Comment: MACD in positive territory and price above it’s 20MA & 50MA.
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: Trend may change to downside
Our pivot point is 34,944.00
Preferable Price Action: Take short positions below pivot with targets at 34,639.00 & 34,460.00.
Alternative Price Action: Above 34,944.00 looks for further upside to 35,268.00 & 35,408.00.
Comment: Price below its 20MA & 55MA and RSI at oversold 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