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 Tuesday, U.S. stocks encountered a broad-based sell-off, as higher-than-expected job openings fueled expectations that the central bank would keep interest rates high.
The Dow Jones Industrial Average fell 430 points (-1.29%) to 33,002, the lowest close since May 31. The S&P 500 dropped 58 points (-1.37%) to 4,229, and the Nasdaq 100 slid 271 points (-1.83%) to 14,565.
According to the U.S. Labor Department's Job Openings and Labor Turnover Survey (JOLTS) report, the number of job openings jumped to 9.61 million in August (vs 8.60 million expected).
The U.S. 10-year Treasury yield bounced a further 11.1 basis points to 4.789%.
Retailing (-3.05%), consumer services (-2.45%), and software & services (-2.31%) stock sectors lost the most during the trading session.
Amazon.com (AMZN) fell 3.66%, and Microsoft (MSFT) dropped 2.61%. as Reuters reported that British media regulator Ofcom may launch an antitrust investigation into both companies' dominance of the U.K. cloud computing market.
Meta Platforms (META) declined 1.92%. The Wall Street Journal reported that the company considers charging $14 a month in Europe for ad-free use of it social media platforms Instagram and Facebook.
Meanwhile, Nvidia (NVDA) sank 2.82%, Tesla (TSLA) lost 2.02%, Alphabet (GOOGL) slipped 1.30%, and Apple (APPL) was down 0.78%.
Rivian Automotive (RIVN) slid 8.33%, as the electric-vehicle maker's full-year delivery outlook missed market expectations.
Eli Lilly (LLY) fell 2.43%. The pharmaceutical developer has agreed to acquire Point Biopharma Global (PNT) for approximately $1.4 billion. Point Biopharma Global (PNT) surged 84.89%.
Novavax (NVAX) rose 8.18% after the U.S. Food and Drug Administration authorized the use of the company's updated Covid-19 booster.
HP Inc (HPQ) rose 1.79% after being upgraded to "buy" at Bank of America.
Carnival (CCL) fell 6.60% after Morgan Stanley lowered its price target on the stock.
In after-market hours, the U.S. House of Representatives ousted the Republican Kevin McCarthy as speaker.
European stocks also closed lower. The DAX 40 fell 1.06%, the CAC 40 dropped 1.01%, and the FTSE 100 was down 0.54%.
U.S. WTI crude futures rebounded $0.70 to $89.53 a barrel.
Gold price slipped a further $3 to $1,824 an ounce.
Market Wrap: Forex
The U.S. dollar maintained its strength against other major currencies. The dollar index advanced to 107.01.
EUR/USD slipped 7 pips to 1.0470, and GBP/USD dipped 8 pips to 1.2079.
USD/JPY once surpassed the psychologically-significant level of 150.00 running up to 150.16. However the pair then swiftly pulling back to a low of 147.30, leading some investors to believe Japanese authorities had intervened to support the yen.
AUD/USD declined 59 pips to 0.6304. As expected, Australia's central bank kept its benchmark rate unchanged at 4.10%.
NZD/USD dropped 37 pips to 0.5905. Later today, New Zealand's central bank is expected to keep its key interest rate unchanged at 5.50%.
USD/CHF gained 23 pips to 0.9206, and USD/CAD added 34 pips to 1.3710.
Bitcoin fell along with other risk assets, easing 0.5% to $27,350.
Crude Oil (WTI) (X3) Intraday: bullish bias above 88.70.
Pivot:
88.70
Our preference:
Long positions above 88.70 with targets at 90.20 & 90.80 in extension.
Alternative scenario:
Below 88.70 look for further downside with 88.20 & 87.75 as targets.
Comment:
Technically the RSI is above its neutrality area at 50.
EUR/USD Intraday: key resistance at 1.0490.
Pivot:
1.0490
Our preference:
Short positions below 1.0490 with targets at 1.0445 & 1.0430 in extension.
Alternative scenario:
Above 1.0490 look for further upside with 1.0510 & 1.0530 as targets.
Comment:
As long as the resistance at 1.0490 is not surpassed, the risk of the break below 1.0445 remains high.
Bitcoin / Dollar intraday: the downside prevails as long as 27560 is resistance
Our pivot point stands at 27560.
Our preference:
The downside prevails as long as 27560 is resistance.
Alternative scenario:
The upside breakout of 27560, would call for 27890 and 28080.
Comment:
The RSI is below 50. The MACD is negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 27427 and 27533).
Gold Intraday: bullish bias above 1815.00.
Pivot:
1815.00
Our preference:
Long positions above 1815.00 with targets at 1833.00 & 1840.00 in extension.
Alternative scenario:
Below 1815.00 look for further downside with 1809.00 & 1803.00 as targets.
Comment:
The RSI calls for a bounce.
S&P 500 (CME) (Z3) Intraday: under pressure.
Pivot:
4283.00
Our preference:
Short positions below 4283.00 with targets at 4245.00 & 4220.00 in extension.
Alternative scenario:
Above 4283.00 look for further upside with 4314.00 & 4338.00 as targets.
Comment:
The RSI calls for a new downleg.
Tesla intraday: the downside prevails as long as 249.8 is resistance
Our pivot point stands at 249.8.
Our preference:
The downside prevails as long as 249.8 is resistance.
Alternative scenario:
The upside breakout of 249.8, would call for 253.4 and 255.6.
Comment:
The RSI is below its neutrality area at 50. The MACD is negative and below its signal line. The configuration is negative. Tesla stands below its 20 and 50 period moving average (respectively at 248.5 and 248.89).
*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.
