Here are today's directional views from the global research desks of Trading Central! These are starting points for your own research to identify opportunities that make sense for you. Like what you see? Feel free to forward this to a friend!
Market Wrap: Stocks, Bonds, Commodities
On Thursday, the Nasdaq 100 (+174 points or 1.18% to 15,042) and the S&P 500 (+16 points or +0.37% to 4,381) halted a three-day decline, lifted by rebounding technology stocks. The Dow Jones Industrial Average dipped 4 points (-0.01%) to 33,946.
In his testimony before the U.S. Senate, Federal Reserve Chair Jerome Powell said the central bank would raise interest rates at a "careful pace" from here.
The U.S. 10-year Treasury yield jumped 7.2 basis points to 3.791%.
Retailing (+2.46%), automobiles (+1.62%), and technology hardware & equipment (+1.38%) stock sectors were the top performers, while banks (-2.12%), real estate (-1.46%), and energy (-1.30%) stock sectors lagged behind.
Amazon.com (AMZN) rose 4.26%. The tech giant announced plans to invest $100 million in creating a generative artificial intelligence (AI) center which will help its AWS cloud-computing service customers to develop AI products.
At the same time, Tesla (TSLA) climbed 1.98%, Microsoft (MSFT) advanced 1.84%, Apple (AAPL) gained 1.65%, and Alphabet (GOOGL) was up 2.16%.
On the other hand, Boeing (BA) fell 3.05%, and the airplane maker's biggest supplier Spirit AeroSystems (SPR) dropped 9.43%. Spirit AeroSystems suspended production after union workers voted to strike.
Alcoa (AA) slid 4.30%. The aluminum producer was downgraded to "underweight" at Morgan Stanley.
Regarding U.S. economic data, the latest number of initial jobless claims remained stable at 264,000 (vs 271,000 expected). The number of existing home sales increased 0.2% on month in May (vs -0.5% expected).
The Conference Board leading index declined 0.7% on month in May (vs -0.4% expected). The Chicago Fed national activity index fell to -0.15 in May (vs +0.15 expected).
European stocks remained under pressure. The DAX 40 fell 0.22%, the CAC 40 dropped 0.79%, and the FTSE 100 was down 0.76%.
U.S. crude futures slid $3.10 (-4.27%) to $69.44 a barrel. The U.S. Energy Department reported a reduction of 3.83 million barrels in crude-oil stockpiles (vs +0.33 million barrels expected).
Gold price sank $18 to $1,913 an ounce.
Market Wrap: Forex
The U.S. dollar regained some strength against other major currencies. The dollar index rose to 102.41.
GBP/USD fell 25 pips to 1.2745. The Bank of England surprised the market by raising its key interest rate by 50 basis points (vs +25 basis points expected) to 5.00%, the highest since April 2008.
The GfK U.K. consumer confidence index ticked up to -24 in June (vs -27 expected).
EUR/USD dropped 31 pips to 1.0955. France's business climate indicator rose to 101 in June (vs 97 expected).
USD/JPY jumped 123 pips to 143.11. This morning, Japan's data showed that the inflation rate slowed to 3.2% on year in May (as expected).
The Jibun Bank Japan manufacturing purchasing managers index declined to 49.8 in June from 50.6 in May.
AUD/USD slid 41pips to 0.6756.
USD/CHF added 20 pips to 0.8951. The Swiss National Bank hiked its key interest rate by 25 basis points to 1.75%.
USD/CAD declined 15 pips to 1.3149.
Bitcoin managed to keep the key level of $30,000.
Gold Intraday: 1900.00 in sight.
Pivot:
1924.00
Our preference:
Short positions below 1924.00 with targets at 1908.00 & 1900.00 in extension.
Alternative scenario:
Above 1924.00 look for further upside with 1930.00 & 1937.00 as targets.
Comment:
The RSI is bearish and calls for further downside.
Crude Oil (WTI) (N3) Intraday: the downside prevails.
Pivot:
70.30
Our preference:
Short positions below 70.30 with targets at 68.70 & 68.00 in extension.
Alternative scenario:
Above 70.30 look for further upside with 71.10 & 71.70 as targets.
Comment:
A break below 68.70 would trigger a drop towards 68.00.
EUR/USD Intraday: towards 1.0920.
Pivot:
1.0980
Our preference:
Short positions below 1.0980 with targets at 1.0935 & 1.0920 in extension.
Alternative scenario:
Above 1.0980 look for further upside with 1.0995 & 1.1010 as targets.
Comment:
The RSI is bearish and calls for further decline.
Bitcoin / Dollar intraday: The upside prevails as long as 29760 is support.
Our pivot point stands at 29760.
Our preference:
The upside prevails as long as 29760 is support.
Alternative scenario:
Below 29760, expect 29360 and 29120.
Comment:
The RSI is above 50. The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 30061 and 30101).
S&P 500 (CME) (M3) Intraday: intraday support around 4410.00.
Pivot:
4410.00
Our preference:
Long positions above 4410.00 with targets at 4437.00 & 4447.00 in extension.
Alternative scenario:
Below 4410.00 look for further downside with 4404.00 & 4393.00 as targets.
Comment:
The next resistances are at 4437.00 and then at 4447.00.
Tesla intraday: our next up target stands at 275
Our pivot point stands at 275
Our preference:
our next up target stands at 275
Alternative scenario:
The downside breakout of 258 would call for 252.2 and 248.8.
Comment:
The RSI is above 50. The MACD is above its signal line and negative. The MACD must break above its zero level to trigger further gains. Tesla is above its 20 and 50 period moving average (respectively at 261.57 and 263.86).
*Disclaimer: The content of this article is for learning purposes only and does not represent the official position of VSTAR, nor can it be used as investment advice.
