Tuesday Market Snapshot
|Well||Current value||Daily change|
|S & P 500||2,737||0.27%|
|WTI Crude Oil||59.10||0.41%|
|EUR / USD||1.1265||0.42%|
After yesterday's sell-off and the dollar rally, we are seeing a move against the current in most asset classes, thanks to reports of some progress in the US-China trade talks. The optimism was triggered by the planned visit of the United States by the main Chinese negotiator pointing to a renewed interest in the Chinese side who withdrew from the talks.
The shares are slightly higher before the US opens up, but the short-term uptrend that has brought the main indices significantly above the October lows appears to be broken, and in particular the Nasdaq is ready for a new test as soon as this week. Currencies and commodities are also very active today, and as volatility is increasing across all asset classes, a committed US session is likely.
GBP / USD, 4 hour chart analysis
The pound continues to be the most volatile currency, although the dollar is the focus of attention from the Fed meeting, with the looming expiration of the Brexit which increases the tension in the sterling market. It is noteworthy that the euro has recently underperformed the pound, due to concerns related to Italy, and today the pound is significantly higher than all its major competitors.
The pound was also supported by the British employment report, as healthy salary growth exceeded the weaker unemployment rate than expected, at least forex markets. GBP / USD jumped higher than the 1.2850 key support / resistance level that has been "in play" several times in recent months, but the broader downtrend remains unscathed from today's move.
Futures S & P 500, analysis of the 4-hour chart
Technical problems are growing in Wall Street, with the key benchmarks that have completely lowered compared to last week's highs. The Dow, which was the strongest index this month, also broke its rising trend line and fell below different levels of short-term support, similar to the S & P 500 slightly weaker and late at Nasdaq.
The S & P 500 is testing the key support zone close to 2750 and, given the broader bearish configuration, we expect the large cap index to revisit the October low in the coming weeks, even with a selloff accelerated in the cards. The weak market interiors are also signaling further problems for the stock bulls, and we would still not get the drop here.
The weakness of the emerging market casts a shadow over risk resources
EEM (Emerging Markets ETF), analysis of the 4-hour chart
While the main risk on currencies is higher today, looking at the weaker links of the risk-route of October, emerging markets and European stocks, the picture is not nice. We looked at the injured DAX chart yesterday and also the most important emerging market ETF shows signs of suffering, with a test of the low level of the bear market apparently inevitable in the near future, especially considering the broad weakness in the markets too developed.
Copper futures, analysis of the 4-hour chart
The raw materials mix today with Chinese optimism, with the increasing volatility of oil, which remains the most interesting trend in the segment. The WTI contract fell below the $ 60 level after yesterday's initial rebound, and although today has touched only a new marginal low, and we still expect a major rebound in the next few days in oil, sellers still have control of the market .
Gold fell below $ 1200 for the first time in a month, since the precious metal failed to reverse last week's collapse, threatening a support level test of $ 1180. Copper has avoided a new fluctuation below the level of $ 2.65, for now, and the metal is still in its broad consolidation pattern, thanks to the renewed optimism of trade, with the broader downtrend that is clearly intact.
Major stock indices
Nasdaq 100 Futures, 4-hour chart analysis
Dow 30 Futures, analysis of the 4-hour chart
VIX (US volatility index), 4-hour chart analysis
DAX 30 Index CFD, analysis of the 4-hour chart
FTSE 100 Index CFD, analysis of the 4-hour chart
EuroStoxx50 Index CFD, analysis of the 4-hour chart
Nikkei 225 Futures, 4-hour chart analysis
Shanghai Composite Index CFD, 4 hour chart analysis
EUR / USD, 4 hour chart analysis
USD / JPY, 4 hour chart analysis
EUR / GBP, 4-hour chart analysis
AUD / USD, 4 hour chart analysis
WTI Crude Oil, analysis of the 4-hour chart
Gold futures, 4-hour chart analysis
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