Stocks Hit Hard Again as DAX and NASDAQ Still Wounded

Thursday Market Recap

Asset Current Value Daily Change
S&P 500 2415 -0.51%
DAX 12371 -0.64
WTI Crude Oil 45.84 1.62%
GOLD 1223.00 0.15%
Bitcoin 2587 0.43%
EUR/USD 1.1395 0.39%

Global markets are in risk-off mode so far today, with Europe and the US tech sector leading the way lower once again. The worse than expected US ADP Employment Report is weighing on equities and the Dollar before Friday’s much-awaited official release. The Euro has rebounded from the correction of the first few days of the week, and that pushed the DAX and the EuroStoxx 50 towards last week’s lows. The weakness in the NASDAQ is dragging the broad US market down, and the rise in Treasury yields continues following yesterday’s Fed Meeting Minutes.

TLT US Bond ETF, 4-Hour Chart Analysis

The returning strength of the European common currency dominates forex markets while the Pound and the Aussie is drifting lower compared to the Greenback amid the negative sentiment. The Yen is also among the stronger majors on safe haven buying that also lifted gold from its lows today in early trading. Oil is rallying hard after the relatively peaceful words from the Saudi-led alliance following the deadline of the Qatar ultimatum, which gave back hope about the OPEC production cut.

WTI Crude Oil $-Hour Chart Analysis

Cryptocurrencies

The major coins are still trading without clear direction after a week of low-volatility consolidation, with only Dash being very active following yesterday’s break-out. The coin reached the $216 target zone and now it’s trading just above the prior high at $200, while Litecoin is consolidating near the $50 level. Ethereum, Bitcoin, ETC, and NEM are little changed while Monero is showing relative strength, drifting slightly higher since yesterday. Most of the smaller coins are also trading without strong momentum, with Bitshares and Waves, falling back to their consolidation pattern, and the previously weaker Zcash and Stratis showing some strength.

Dash, 4-Hour Chart Analysis

Technical Picture

The NASDAQ is right at last week’s lows after this morning’s dip, and it is at risk of forming a new lower low that would confirm the trend change after breaking the long-term trendline last week. The tech benchmark bounced off the flash-crash lows which turned into resistance this week, and that might mean that the index will soon test the key support zone near 5500.

NASDAQ 4-Hour Chart Analysis

Key Economic Releases on Thursday

Time, CET Country Release Actual Expected Previous
3:30 AUSTRALIA Trade Balance 2.47 bill 1.11 bill 0.56 bill
9:15 SWITZERLAND CPI Index -0.1% 0.0% 0.25
13:30 EUROZONE Monetary Meeting Accounts
14:15 US ADP Employment Change 158,000 181,000 253,000
14:30 CANADA Trade Balance -1.1 bill -0.5 bill -0.4 bill
14:30 US Initial Jobless Claims 248,000 245,000 244,000
16:00 US ISM Non-Manufacturing PMI 57.4 56.6 56.9

Key Economic Releases on Friday

Time, CET Country Release Expected Previous
9:30 UK Halifax HPI 0.2% 0.4%
10:30 UK Manufacturing Production 0.4% 0.2%
14:30 CANADA Employment Change 11,400 54,500
14:30 CANADA Unemployment Rate 6.6% 6.6%
14:30 US Non-Farm Payrolls 175,000 138,000
14:30 US Unemployment Rate 4.3% 4.3%
14:30 US Hourly Earnings 0.3% 0.2%
16:00 CANADA Ivey PMI 57.7 53.8
17:00 US FED Monetary Policy Report

 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.

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