Pre-Market Analysis and Chartbook: Dow Hits Record High, 27,000 in Sight

Wednesday Market Snapshot

Asset Current Value Daily Change
S&P 500 2,941 0.40%
DAX 30 12,252 0.00%
WTI Crude Oil 74.85 -0.25%
GOLD 1,206 -0.14%
Bitcoin 6,477 -0.35%
EUR/USD 1.1531 -0.13%

Risk assets, especially stocks staged a rebound today in early Asian and European trading, with the US indices recovering a large part of their late-session losses. The Dow, which has been on a tear lately closed yesterday at its all-time high, and today, the mega-cap benchmark extended its rally, with the help of Intel (INTC) which is now up by 10% in 4 days.

The Nasdaq that had an ugly afternoon session yesterday and the S&P 500 also opened higher, and while under-the-hood, there is plenty of technical weakness, the indices continue to trade in clear uptrends in the US.

Dow 30 Futures, 4-Hour Chart Analysis

The industrial average is close to hitting the 27,000 level for the first time in history after the recent NAFTA-replacement deal, and that is impressive even considering the fact that the Dow only recently surpassed its January high. In Europe, today was we saw gains across the board, thanks to a new Italian budget proposal, but the positive moves still mean that shares on the Old Continent are around 10% below their highs form last year.

FTSE 100 Index CFD, 4-Hour Chart Analysis

The FTSE 100 is among the stronger benchmarks in Europe, as the Brexit induced weakness in the Pound helped British stocks in staying ahead of their European peers. That said, the index is clearly in a declining trend, and although the recent Italian troubles didn’t hurt it too much, it’s still very weak compared to the US market.

The FTSE is currently trading in a very strong support/resistance zone between 7500 and 7550, and a move above the upper boundary could trigger a rally towards 7700.

Dollar and Pound Gain Ground Amid Positive Economic News

GBP/USD, 4-Hour Chart Analysis

The ADP reported non-farm payrolls before Friday’s official release and it came in at 230,000 compared to the 185,000 expected, and the 168,000 number from August. The ISM non-manufacturing shot higher unexpectedly to 61.3 in September PMI, helping the modest rally in the Dollar index today.

The Great British Pound also bounced back against its major peers, although the British services PMI missed expectations by a hair, with the GBP/USD pair topping 1.30 after yesterday’s plunge.

Copper Futures, 4-Hour Chart Analysis

Commodities are having another mixed day, with the energy segment still being in the center of attention. Copper and gold are flat, but in the industrial metal a possible break-out of the current consolidation could make the coming days interesting.

Natural gas is the star among the main energy-related commodities today, with the front contract hitting an 8-month high above the $3.20 level. The WTI and Brent crude oil contracts are little change, on the other hand, consolidating their recent lofty gains near $75 and $85 per barrel respectively.

ChartBook

Major Stock Indices

S&P 500 Futures, 4-Hour Chart Analysis

Nasdaq 100 Futures, 4-Hour Chart Analysis

VIX (US Volatility Index), 4-Hour Chart Analysis

DAX 30 Index CFD, 4-Hour Chart Analysis

EuroStoxx50 Index CFD, 4-Hour Chart Analysis

Nikkei 225 Futures, 4-Hour Chart Analysis

Shanghai Composite Index CFD, 4-Hour Chart Analysis

EEM (Emerging Markets ETF), 4-Hour Chart Analysis

Forex

EUR/USD, 4-Hour Chart Analysis

USD/JPY, 4-Hour Chart Analysis

EUR/GBP, 4-Hour Chart Analysis

AUD/USD, 4-Hour Chart Analysis

Commodities

WTI Crude Oil, 4-Hour Chart Analysis

Gold Futures, 4-Hour Chart Analysis

Featured image from Shutterstock

Author:
Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.