FXTM information and reviews
OctaFX information and reviews
XM information and reviews
FXCC information and reviews
Libertex information and reviews
FxPro information and reviews

Has The Stock Market Breadth Improved?

30 June 2021

This week has been particularly lackluster for the US and European stock markets. Traders do not seem to be finding their appetite for riskier assets and the main concern among them has been about rising inflation. Basically, what investors are doing is monitoring the economic numbers very closely and trying to guess the next move by the Federal Reserve about their monetary policy. It is highly likely that the Fed may be on the edge of thinking of beginning the discussion of pulling back some of their coronavirus related support. As for the markets, we continue to see low volume and subdued volatility and both of them are signs of a major brewing.

The Asian stock market traded mostly mixed on Thursday. The Nikkei index fell 0.54%. The Shanghai index increased by 0.13%, while the ASX index declined 0.28%. The HSI index also fell by 0.39%.

Dow Jones and S&P 500: Market Breadth

The Dow Jones’ market breadth seemed to be losing more momentum. 73% of the Dow Jones stocks traded above their 200-day moving average. The S&P 500 stock breadth also displayed less strength yesterday. 75% of the shares traded above their 200-day moving average.

The Dow Jones futures are trading flat today. In terms of economic data, investors will be looking at the upcoming Weekly Jobless Claims data more closely. The forecast is for 427K while the previous number was at 444K. In addition to this, we also have the US Prelim GDP q/q numbers and the forecast is for 6.5% while the previous reading was 6.4%.

The Dow Jones futures are trading lower for the third consecutive day. There hasn’t been much of price movement but the Dow Jones futures market have logged two consecutive days of losses yesterday. Having said that, the Dow Jones futures are still trading above the 50-day SMA on the daily time frame. Given the weakness in the price action, it is likely that we may see the Dow breaking below the 50-day SMA. If it does that, it will be the third time, the Dow will break below the 50-day SMA in less than a month which will mean more weakness ahead for the price action.

As for the RSI, we do not see any signs of strength as well as it is stuck near the 55 RSI level. For the past few days, the RSI has been moving sideways and only a reading of 30, something which is associated with oversold, or a reading of 70, which is associated with overbought, are likely to bring more action for the Dow.

The near term support is at 33,366, while the resistance is at 34982.

Stock Market Rally

The S&P 500 stock index closed higher yesterday; the index advanced by 0.03%. The tech sector led the index higher and 10 out of 11 sectors closed lower. The Dow index scored some modest gains yesterday; the Dow stocks moved the index higher by 0.03%. 12 shares advanced, while 18 shares closed lower. The NASDAQ composite, a tech-savvy index, also closed slightly higher yesterday. It advanced by 0.59%

S&P 500 Leaders and Laggards: Ford and Ball Corp

Ford stock contributed the biggest gain, soaring 8.5%. Ball Corp stock was the largest drag; it fell by 4.22%. The S&P 500 stock index is up 11% so far this year.

Nike provided the biggest help for the Dow Jones; it advanced by 1.91%, while Walgreens was the largest decliner, it fell by 4.023%.




The Euro rebounded from the low
The Euro rebounded from the low

After updating its multi-year lows again, the major currency pair rebounded. The current quote for the instrument is 0.9656. Last night, the local interest in risks improved a bit, helping the asset to successfully correct...

29 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...

28 Sep 2022

Forex and Cryptocurrencies Forecast for September 26-30, 2022
Forex and Cryptocurrencies Forecast for September 26-30, 2022

Last week, all the attention of the markets was focused on the FOMC meeting of the US Federal Reserve, which took place on September 21. The probability of another rate hike by 75 basis points (bp)...

26 Sep 2022

Trading the SPDR S&P 500 ETF Trust
Trading the SPDR S&P 500 ETF Trust

The Standard & Poor’s (S&P) 500 Index measures the market capitalisation of the top 500 US largest corporations. Many traders and investors use the S&P 500 Index as a benchmark...

23 Sep 2022

Gold pauses as traders await Fed decision
Gold pauses as traders await Fed decision

The anticlimactic performance of gold continues as the prospect of aggressive rate hikes by central banks around the world amid heightened inflationary pressures...

21 Sep 2022

Developing a forex trading plan: All you need to know
Developing a forex trading plan: All you need to know

All forex traders have different backgrounds, market views, risk appetite, thought processes and expectations. Therefore, traders should not just blindly follow what other traders do...

20 Sep 2022

Editors' Picks

HFM information and reviews
IronFX information and reviews
FXCM information and reviews
NordFX information and reviews
Vantage information and reviews
FP Markets information and reviews
FP Markets

© 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.