FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
Libertex information and reviews
Libertex
91%
FxPro information and reviews
FxPro
90%

Stock Market Breadth


12 November 2021 Written by Naeem Aslam  AvaTrade Chief Market Analyst Naeem Aslam

The major indices are on course to end five-week winning streaks, but they remain within spitting distance of their recent highs. Furthermore, the bond market has experienced more dramatic activity this week, with the inflation report leading to a strong reversal of the recent decrease in the 10-year Treasury yield on Wednesday. Traders have begun to assume that the Fed is way behind the curve, and the Fed must recognise that the present inflation scenario is not transient.

Market participants expect that the Fed will raise interest rates sooner rather than later, perhaps by the third quarter of next year. However, if inflation data continues to skyrocket as it did yesterday, the Fed may begin raising interest rates even earlier.

Friday is comparatively quiet for investors after a hectic week of results and economic data releases. On Friday morning, the preliminary reading for November consumer confidence and the September data on job vacancies and labour turnover will be issued.

Commodities

Gold was unchanged on Friday, but it was on track for its greatest weekly gain in six months, as strong consumer prices in the United States fuelled demand in the metal as an inflation hedge. Gold prices have profited from cheap monetary policies used to stimulate economic development during the epidemic, but any increase in interest rates will lessen the non-interest-bearing metal’s allure by increasing its opportunity cost.

Oil prices fell on Friday, erasing gains from the previous session, as the dollar rose on expectations that the Federal Reserve will announce plans to hike interest rates to combat inflation.

The Asian stock market traded mostly higher on the final trading day of the week. The Nikkei index increased 1.13%. The Shanghai index soared 0.23%, while the HSI index gained 0.19%. The ASX index gained 0.83%.

Dow Jones and S&P 500: Market Breadth

The Dow Jones’ market breadth lost some momentum yesterday. 75% of the Dow Jones stocks traded above their 200-day moving average.  The S&P 500 stock breadth revealed strengthened yesterday. 79% of the shares traded above their 200-day moving average. 

The Dow Jones futures are trading lower today. In terms of economic data, investors will be looking at the JOLTS data, which is due at 13:30 PM BST. The expectations are that we will see the reading of 10.02M for the JOLTS Job opening while the previous number came in at 10.4M. We are also going to get the US Consumer Sentiment today, and the forecast for the Consumer Sentiment number is to increase further to 72.5, from its previous reading of 71. 

The Dow Jones futures have started to lose some momentum after posting a new record high this week. For the last past three days, we have seen bulls losing the battle against keeping the price in positive territory. The price has started its journey to move towards its important moving averages i.e. 50, 100 and 200-day SMAs. The price has been trading well above the these moving averages and it also pierced the upper line of the Bollinger band, which confirms that prices were overbought and a retracement was shortly on the cards. The near-term support is at 35,047, while the resistance is at 36,272.    

Stock Market Rally

Dow Jones Leaders and Laggards: Walgreens and Disney

Walgreens Boots the biggest help for the Dow Jones; it advanced by 9%, while the Walt Disney stock was the largest decliner, it fell by 7.07%. 

#source

Share:


Related

The Pound is having tough times
The Pound is having tough times

The Pound Sterling is keeping balance against the USD as much as possible. The current quote for the instrument is 1.0800. The news released yesterday were rather puzzling. The Bank of England announced...

29 Sep 2022

EUR/USD: bears now target 0.9500
EUR/USD: bears now target 0.9500

EUR/USD drops for the seventh straight session and tests 0.9535. Below the 2022 low at 0.9535 comes the 0.9500 region. EUR/USD extends the leg lower to the proximity of 0.9530 earlier on Wednesday...

28 Sep 2022

Gold Shows Signs of Life, But Heads Towards Another Losing Month
Gold Shows Signs of Life, But Heads Towards Another Losing Month

The precious metal is largely considered as a hedge to inflation, but it has not confirmed this status during the current year. It did kick it off with a rally, but as the Fed begun hiking rates back in March...

27 Sep 2022

Penny Stocks: What Are They?
Penny Stocks: What Are They?

Locating penny stocks with buy ratings is getting more and more challenging. The markets become less adventurous as interest rates rise. That indicates that penny stocks, which are riskier by definition...

20 Sep 2022

Bitcoin and Ethereum: Inflation Brought Down The Prices
Bitcoin and Ethereum: Inflation Brought Down The Prices

Strong inflation brought down the price of bitcoin yesterday from $22,800 to the $20,000 support level. This morning, the price of Ethereum formed a new seven-day low at the $1550 level...

15 Sep 2022

Cooler USD & Stocks Higher Ahead of CPI
Cooler USD & Stocks Higher Ahead of CPI

USDIndex – Slips (108.00 tested) for a 5th straight day, lifting EUR & GBP. Fed Funds Futures back to 90% chance of 75 bp (third consecutive) hike...

14 Sep 2022


Editors' Picks

HFM information and reviews
HFM
89%
IronFX information and reviews
IronFX
88%
FXCM information and reviews
FXCM
87%
NordFX information and reviews
NordFX
85%
Vantage information and reviews
Vantage
84%
FP Markets information and reviews
FP Markets
81%

© 2006-2022 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.