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 rallied for a third session. The S&P 500 climbed 64 points (+1.45%) to 4,497, the Nasdaq 100 jumped 324 points (+2.15%) to 15,376, and the Dow Jones Industrial Average traded 292 points (+0.85%) higher to 34,852.
According to the U.S. Labor Department's Job Openings and Labor Turnover Survey (JOLTS) report, the number of job openings fell for a third straight month to 8.83 million in July, the lowest level since March 2021.
The Conference Board consumer confidence index dropped to 106.1 in August (vs 116.0 expected).
Those weaker-than-expected economic data drove expectations that the U.S. Federal Reserve could pause interest-rate hikes.
The U.S. 10-year Treasury yield sank 9 basis points to 4.112%, and the 2-year yield dipped below the key level of 5%.
Automobiles (+6.62%), semiconductors (+3.24%), and telecoms services (+3.02%) stock sectors were the top performers during the trading session.
All big-tech stocks closed higher, led by Tesla (TSLA, +7.69%), Nvidia (NVDA, +4.16%), Alphabet (GOOGL, +2.72%), Meta Platforms (META, +2.66%), and Apple (AAPL, +2.18%).
Best Buy (BBY) gained 3.86% after reporting better-than-expected quarterly earnings and raising its full-year earnings guidance.
Bitcoin and related stocks were boosted by a Federal court ruling that the U.S. Securities and Exchange Commission (SEC) was wrong to reject an application from Grayscale Investments to create a spot Bitcoin exchange-traded fund.
Bitcoin pumped 6.20% to $27,700, Marathon Digital (MARA) soared 28.81%, and MicroStrategy (MSTR) jumped 10.79%, and Coinbase Global (COIN) was up 14.91%.
European stocks also closed higher. The DAX 40 gained 0.88%, the CAC 40 rose 0.67%, and the FTSE 100 was up 1.72%.
Commodity prices climbed amid a weakening U.S. dollar. U.S. WTI crude futures added $1.10 to $81.23 a barrel.
Gold price increased $17 to $1,937 an ounce.
Market Wrap: Forex
The U.S. dollar index retreated to 103.43.
EUR/USD rose 66 pips to 1.0885. Germany's GfK consumer confidence index declined to -25.5 for September (vs -23.0 expected).
France's consumer confidence index remained stable at 85 in August (as expected).
USD/JPY dropped 76 pips to 145.78.
GBP/USD rose 48 pips to 1.265, and AUD/USD gained 54 pips to 0.6483.
USD/CHF slid 60 pips to 0.8778, and USD/CAD fell 41 pips to 1.3558.
Crude Oil (WTI) (V3) Intraday: further advance.
Pivot:
80.40
Our preference:
Long positions above 80.40 with targets at 82.20 & 82.90 in extension.
Alternative scenario:
Below 80.40 look for further downside with 79.70 & 79.20 as targets.
Comment:
The RSI shows upside momentum.
EUR/USD Intraday: the upside prevails.
Pivot:
1.0840
Our preference:
Long positions above 1.0840 with targets at 1.0890 & 1.0915 in extension.
Alternative scenario:
Below 1.0840 look for further downside with 1.0820 & 1.0800 as targets.
Comment:
The RSI advocates for further upside.
Bitcoin / Dollar intraday: as long as 27520 is support look for 28240
Our pivot point stands at 27520.
Our preference:
as long as 27520 is support look for 28240
Alternative scenario:
Below 27520, expect 27250 and 27090.
Comment:
The RSI is above 50. The MACD is below its signal line and positive. The price could retrace. Moreover, the price is below its 20 period moving average (27743) but above its 50 period moving average (26735).
Gold Intraday: aim @ 1950.00.
Pivot:
1926.00
Our preference:
Long positions above 1926.00 with targets at 1942.00 & 1950.00 in extension.
Alternative scenario:
Below 1926.00 look for further downside with 1918.00 & 1913.00 as targets.
Comment:
The RSI shows upside momentum.
S&P 500 (CME) (U3) Intraday: further advance.
Pivot:
4465.00
Our preference:
Long positions above 4465.00 with targets at 4544.00 & 4580.00 in extension.
Alternative scenario:
Below 4465.00 look for further downside with 4426.00 & 4400.00 as targets.
Comment:
The next resistances are at 4544.00 and then at 4580.00.
Tesla intraday: the RSI is overbought
Our pivot point stands at 250.4
Our preference:
The upside prevails as long as 250.4 is support.
Alternative scenario:
The downside breakout of 250.4 would call for 244.8 and 241.4.
Comment:
The RSI is trading above 70. This could mean that either prices are in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Tesla is trading above both its 20 and 50 period moving average (respectively at 246.56 and 239.56).
*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.
