FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
FXCC information and reviews
FXCC
90%
Markets.com information and reviews
Markets.com
89%
FxPro information and reviews
FxPro
88%
EUR/USD
1.1730
BTC/USD
47 499.18
GBP/USD
1.3751
USD/JPY
109.9450
USD/CHF
0.9316
USD/CAD
1.2765
EUR/JPY
128.9676

Stock Market Breadth Ahead and Jackson Hole Day


27 August 2021

Stock investors will be learning more about the Fed’s monetary stance today. Exiting the loose monetary policy is extremely important for the Fed as they cannot keep this policy in place forever. Today, we could hear from the Fed in terms of their view of the economy, and how the Fed may be pulling the support, which they put in place to save the US economy from a major catastrophe. The first action, which is expected from the Fed, is to reduce the asset purchase programme, which currently sits at $120 billion each month, and then it will be lifting the interest rates from their ultra-low levels.

One issue the Fed is facing is that the economic numbers are telling us that growth seems to be stalling, and the last thing the Fed wants to do is to make investors and traders panic by sending a hawkish message. It is about finding the right balance, and every statement and word needs to be perfectly crafted.

Stock futures are trading cautiously higher today, and it is highly likely that this theme may continue until we hear more from the Fed Chairman Jerome Powel later in the day. The Asian stock market traded mostly mixed on Friday. The Nikkei index declined 0.46%. The HSI index increased by 0.20%, while the ASX index decreased 0.03%. The Shanghai index advanced by 0.44%.

Dow Jones and S&P 500: Market Breadth

The Dow Jones’ market upward momentum eased off yesterday. 77% of the Dow Jones stocks traded above their 200-day moving average. The S&P 500 stock breadth also lost strength yesterday. 79% of the shares traded above their 200-day moving average. 

The Dow Jones futures are trading modestly higher today. In terms of economic data, investors will be looking at the Personal Income and Personal Spending data, which is due later in the day. The forecast for Personal Income is 0.2% and Personal Spending is 0.4%. 

The Dow Jones futures are still trading in an upward channel on the daily time frame. The bulls are still in control of the price as the price is trading above the 50, 100 and 200-day SMA on the daily time frame. As long as the price continues to trade above these moving averages, it is highly likely that we may continue to see more record highs for the Dow Jones. Although, it is important to note that there is negative divergence between the Dow Jones and the RSI on the daily time frame, which means that while the price is making higher highs, the momentum indicator, the RSI isn’t confirming the same. Traders should take this as a sign of caution. The near term support is at 34,737, while the resistance is at 35,633.    

Stock Market Rally

The S&P 500 stock index closed lower yesterday; the index declined by 0.58%. The consumer discretionary sector led the index lower, and 9 out of 11 sectors closed lower. The Dow index decreased yesterday; the Dow stocks moved the index decreased by 0.58%. 4 shares advanced, while 26 shares closed lower. The NASDAQ composite, a tech-savvy index, also closed lower by 0.64% yesterday.

S&P 500 Leaders and Laggards: ETSY and Dollar tree

ETSY stock contributed the biggest gain, soaring 5.09%%. Dollar Tree was the largest drag; it fell by 12.07%. The S&P 500 stock index is up 20.74% so far this year. Salesforce provided the biggest help for the Dow Jones; it advanced by 2.66%, while Boeing was the largest decliner, it fell by 2.05%%. 

#source

Related

US Retail sales and other data has supported Dollar
US Retail sales and other data has supported Dollar

The US Retail sales notably exceeded expectations, adding 0.7% in August vs an expected 0.7% decline. The increase to August last year is an impressive 14.9%...

17 Sep 2021

Geopolitics Fire Up Up and Cryptos Are Booming
Geopolitics Fire Up Up and Cryptos Are Booming

Futures in the United States and Europe are trading lower today as investors are worried about the new security agreement between the U.S., the U.K. and Australia...

16 Sep 2021

UK inflation surges, stocks struggle
UK inflation surges, stocks struggle

European markets flat at the open this morning as UK inflation surged to a record high in August and Chinese economic data was soft. China’s retail sales fell to...

15 Sep 2021

Gold is anxiously waiting for the US inflation data
Gold is anxiously waiting for the US inflation data

Gold, hovering around $1790 since last Thursday, might take an even harder hit. The bears are waiting for a good signal to launch an attack. It is now holding it below significant levels...

14 Sep 2021

Here Is Why Stock Futures Are Trading Lower
Here Is Why Stock Futures Are Trading Lower

Despite a week of doom and gloom in the stock markets, futures in the United States are still trading lower. Since February, the S&P 500 has been on its longest...

13 Sep 2021

Fintech - too big to be?
Fintech - too big to be?

Two of the world’s largest economies are in sync with pressure on their fintech giants. Access to user data and the growth of ecosystems have effectively...

13 Sep 2021


Editors' Picks

OctaFX information and reviews
OctaFX
86%
HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
Vantage FX information and reviews
Vantage FX
78%
Moneta Markets information and reviews
Moneta Markets
77%

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.