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 Wednesday, U.S. stocks fell, impacted by an unexpected downgrade of the U.S. credit rating by Fitch Ratings. The Dow Jones Industrial Average slid 348 points (-0.98%) to 35,282, the S&P 500 dropped 63 points (-1.38%) to 4,513, and the Nasdaq 100 slumped 347 points (-2.21%) to 15,370.
Fitch downgraded the U.S. rating to AA+ from AAA citing expected fiscal deterioration over the next three years.
The U.S. 10-year Treasury yield climbed 4.7 basis points to 4.070%.
The worst-performing sectors during the trading session were semiconductors (-4.22%), automobiles (-2.7%), and software & services (-2.48%).
Advanced Micro Devices (AMD) fell 7.02% despite facts that the chip maker posted higher-than-expected earnings and provided upbeat revenue forecast, and that the stock was upgraded to "buy" at Citi.
SolarEdge Technologies (SEDG) plunged 18.36%, and Virgin Galactic (SPCE) lost 4.35%. Both companies reported disappointing quarterly results.
On the other hand, with upbeat earnings reports, CVS Health (CVS) rose 3.33%, and Humana (HUM) gained 5.60%.
Regarding U.S. economic data, the ADP jobs report showed the economy added 324,000 private jobs in July (vs +210,000 expected).
European stocks also closed lower. The DAX 40 fell 1.36%, the CAC 40 dropped 1.26%, and the FTSE 100 was down 1.36%.
U.S. WTI crude futures declined $1.60 to $79.77 a barrel. The U.S. Energy Department reported a reduction of 17.05 million barrels in crude-oil stockpiles (vs -1.37 million barrels expected).
Gold price sank a further $9 to $1,935 an ounce.
Market Wrap: Forex
The U.S. dollar strengthened against other major currencies despite Fitch's U.S. credit rating downgrade. The dollar index climbed to 102.64.
EUR/USD fell 47 pips to 1.0937.
GBP/USD dropped 67 pips to 1.2710. Later today, the Bank of England is expected to raise its key rate by 25 basis points to 5.25%.
USD/JPY advanced a further 8 pips to 143.42.
AUD/USD sank a further 72 pips to 0.6541, the lowest close since May 31.
USD/CHF added 27 pips to 0.8780, and USD/CAD was up 67 pips to 1.3348.
Bitcoin once touched the key level of $30,000 before falling back to $29,130.
Crude Oil (WTI) (Q3) Intraday: expect 78.30.
Pivot:
80.80
Our preference:
Short positions below 80.80 with targets at 79.00 & 78.30 in extension.
Alternative scenario:
Above 80.80 look for further upside with 81.50 & 82.40 as targets.
Comment:
The RSI is bearish and calls for further downside.
EUR/USD Intraday: key resistance at 1.0965.
Pivot:
1.0965
Our preference:
Short positions below 1.0965 with targets at 1.0915 & 1.0900 in extension.
Alternative scenario:
Above 1.0965 look for further upside with 1.0980 & 1.1000 as targets.
Comment:
As long as the resistance at 1.0965 is not surpassed, the risk of the break below 1.0915 remains high.
Bitcoin / Dollar intraday: rebound towards 29840
Our pivot point stands at 28850.
Our preference:
Rebound towards 29840
Alternative scenario:
The downside breakout of 28850 would call for 28470 and 28240.
Comment:
The RSI is below its neutrality area at 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 29167 and 29424).
Gold Intraday: the downside prevails.
Pivot:
1947.00
Our preference:
Short positions below 1947.00 with targets at 1927.00 & 1920.00 in extension.
Alternative scenario:
Above 1947.00 look for further upside with 1954.00 & 1962.00 as targets.
Comment:
The RSI calls for a new downleg.
S&P 500 (CME) (U3) Intraday: key resistance at 4555.00.
Pivot:
4555.00
Our preference:
Short positions below 4555.00 with targets at 4520.00 & 4497.00 in extension.
Alternative scenario:
Above 4555.00 look for further upside with 4580.00 & 4608.00 as targets.
Comment:
The RSI advocates for further downside.
Tesla intraday: short term rebound towards 267.8
Our pivot point stands at 248.2
Our preference:
Short term rebound towards 267.8
Alternative scenario:
The downside breakout of 248.2 would call for 241.4 and 237.2.
Comment:
The RSI is below 50. The MACD is negative and above its signal line. The configuration is mixed. Tesla stands below its 20 and 50 period moving average (respectively at 257.02 and 262.3).
*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.
