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, U.S. stocks ended sharply lower posting a three-session decline, thanks to the Federal Reserve showing a more hawkish stance on interest rates.
The Dow Jones Industrial Average fell 370 points (-1.08%) to 34,070, the S&P 500 dropped 72 points (-1.64%) to 4,329, and the Nasdaq 100 slid 275 points (-1.84%) to 14,694.
U.S. data showed that the latest number of initial jobless claims fell to 201,000, the lowest level since January. The Philadelphia Fed manufacturing index dropped sharply to -13.5 in September (vs 0.0 expected).
The Conference Board leading index decreased 0.4% on month in August (vs -0.2% expected), and existing home sales declined 0.7% on month in August (vs +1.5% expected).
The U.S. 10-year Treasury yield advanced a further 8.3 basis points to 4.490%, the highest level since 2007, and the 2-year yield surged to a 17-year high of 5.202%.
Real estate (-3.47%), retailing (-3.25%), and consumer durables & apparel (-2.74%) stock sectors lost the most during the trading session.
Amazon.com (AMZN) fell 4.41%, Nvidia (NVDA) dropped 2.89%, Tesla (TSLA) slid 2.62%, and Alphabet (GOOGL) was down 2.47%.
Cisco Systems (CSCO) declined 3.89%. The network hardware maker announced a $28 billion acquisition of Splunk Inc.
Broadcom (AVGO) slipped 2.67% on a news report that Google may stop ordering artificial intelligence chips from the company by 2027.
XPeng (XPEV) dropped 2.81%. The Chinese electric-vehicle maker was rated "sell" at Citi.
On the other hand, FedEx (FDX) climbed 4.52% after reporting better-than-expected quarterly earnings.
News Corp (NWSA) rose 1.27% and Fox Corp (FOX) gained 2.99%, on news that Rupert Murdoch is stepping down as chairman of both companies.
European stocks also closed lower. The DAX 40 fell 1.33%, the CAC 40 dropped 1.59%, and the FTSE 100 was down 0.69%.
U.S. WTI crude futures remained relatively flat at $89.58 a barrel.
Gold price slipped $10 to $1,919 an ounce.
Market Wrap: Forex
The U.S. dollar index remained firm at 105.39.
GBP/USD sank 52 pips to 1.2292. Facing with slowing economy and easing inflation, the Bank of England kept its key interest rate unchanged at 5.25% (vs a hike of 25 basis points expected).
This morning, the U.K. GfK consumer confidence index posted at -21 for September (vs -28 expected).
EUR/USD dipped 3 pips to 1.0658, and USD/CHF rose 60 pips to 0.9046. The Swiss National Bank unexpectedly held interest rate steady at 1.75%.
USD/JPY tumbled 79 pips to 147.55. This morning, Japan's data showed that the inflation rate dipped to 3.2% on year in August (vs 3.3% expected).
Later today, the Bank of Japan is expected to keep its key interest rate unchanged at negative level of -0.100%.
AUD/USD slipped 35 pips to 0.6413.
USD/CAD added 26 pips to 1.3488.
Bitcoin retreated along with other risky assets, sinking 2% to $26,590.
Crude Oil (WTI) (X3) Intraday: consolidation in place.
Pivot:
90.40
Our preference:
Short positions below 90.40 with targets at 88.90 & 88.35 in extension.
Alternative scenario:
Above 90.40 look for further upside with 90.95 & 91.65 as targets.
Comment:
As long as 90.40 is resistance, look for choppy price action with a bearish bias.
EUR/USD Intraday: bullish bias above 1.0635.
Pivot:
1.0635
Our preference:
Long positions above 1.0635 with targets at 1.0670 & 1.0690 in extension.
Alternative scenario:
Below 1.0635 look for further downside with 1.0615 & 1.0600 as targets.
Comment:
The RSI has broken down its 30 level.
Bitcoin / Dollar intraday: rebound towards 27110
Our pivot point stands at 26330.
Our preference:
Rebound towards 27110
Alternative scenario:
The downside breakout of 26330 would call for 26020 and 25840.
Comment:
The RSI is below 50. The MACD is above its signal line and negative. The configuration is mixed. Moreover, the price stands below its 20 and 50 period moving average (respectively at 26591 and 26771).
Gold Intraday: key resistance at 1926.00.
Pivot:
1926.00
Our preference:
Short positions below 1926.00 with targets at 1913.00 & 1906.00 in extension.
Alternative scenario:
Above 1926.00 look for further upside with 1931.00 & 1937.00 as targets.
Comment:
Technically the RSI is below its neutrality area at 50.
S&P 500 (CME) (Z3) Intraday: the downside prevails.
Pivot:
4415.00
Our preference:
Short positions below 4415.00 with targets at 4336.00 & 4318.00 in extension.
Alternative scenario:
Above 4415.00 look for further upside with 4439.00 & 4468.00 as targets.
Comment:
The RSI shows downside momentum.
Tesla intraday: the downside prevails as long as 262.8 is resistance
Our pivot point stands at 262.8
Our preference:
The downside prevails as long as 262.8 is resistance
Alternative scenario:
The upside breakout of 262.8, would call for 269.6 and 273.6.
Comment:
The RSI is below its neutrality area at 50. The MACD is below its signal line and negative. The configuration is negative. Tesla stands below its 20 and 50 period moving average (respectively at 261.83 and 264.3).
*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.
