Thursday Market Recap
|Current Value||Daily Change|
|WTI Crude Oil||47.70||-0.02%|
Donald Trump suffered a slight defeat yesterday, as the health-care vote got delayed, and that spooked traders in the second half of the afternoon. The decline didn’t last long, though, and the bounce resumed in overnight trading. The major stock indices are slightly higher today compared to Thursday’s closing prices. The most important asset classes are still in correction mode, as we predicted, but the Tuesday extremes are well within striking distance, and the final hours of the Wall Street session could very well hold some surprises.
This morning’s favorable European manufacturing and services PMIs gave some confidence to traders, but overall, bulls can’t be satisfied with the weak bounce. Oil remained stable throughout the day, as it still consolidates following the key breakdown that we have been monitoring. The Pound gave back some if its recent lofty gains, while the US Dollar only managed a meager bounce and remains under pressure. Safe-haven assets such as the Japanese Yen, Swiss Franc, and Gold are holding on to their gains, despite the slight drift lower.
Cryptocurrencies had a busy day, as Bitcoin dipped below 1000, continuing its violent correction, with still an eye on the 880 support. Etherum looks to be heating up, as it flirts with the crucial resistance zone near 45. The strong move in Ripple stalled right at the widely watched 0.01 level, but it should remain on the watch-lists of investors.
S&P 500 Index, Hourly Chart
The sideways price action continued this morning as the dominant short-term downtrends remain intact across the major stock exchanges. With the all-time highs still in sight, The S&P 500 is hovering around the confluence of the 2350 support level and the 38.2% Fibonacci retracement level, while the MACD is nearing neutral territory thanks to the consolidation. Short-term traders could already be looking at entry points on the short side, although a push higher is still a distinct possibility.
Key Economic Releases on Friday
|US||Core Durable Orders (monthly)||0.40%||0.50%||0.00%|
US core durable orders were slightly lower than expected in February, but the slightly negative news didn’t rock the market, as the bullish European numbers supported stocks. The Canadian CPI index was perfectly in line with expectations, as the local economy continues to recover from last year’s oil shock.
Key Economic Releases on Monday
|9:00||EUROZONE||German IFO Business Climate||111.2||111.0|