Monday Market Recap
|Asset||Current Value||Daily Change|
|WTI Crude Oil||46.44||-0.19%|
Global financial markets are very quiet this Monday, with no major catalyst from the economic and political fronts. Last week’s rally in US stocks remains intact, as the NASDAQ 100 is holding up above the crucial 5800 level, while the S&P 500 and the DOW are close to their all-time highs. European and Asian stocks are also little changed, although the Chinese market turned lower in late trading, hitting a one-month low in the process and exiting the rising wedge pattern that we have been following recently. Chinese Industrial Production number came in above expectations, while GDP growth also beat the consensus according to the official data, although the market is not convinced, it seems.
Shanghai Composite, 4-Hour Chart Analysis
Currency markets are also in summer-mode, with no major moves after last week’s Dollar sell-off and, as the Aussie, the Loonie and the New Zealand Dollar are holding on to their gains, while the Euro is hovering around its 12-month highs. The Great British Pound is the weakest major today, thanks to the renewed uncertainty regarding the beginning of the Brexit talks, while the Yen is also trading slightly lower once again. Commodities turned broadly higher today, with both industrial and precious metals rallying, despite the pull back in Chinese stock, while oil is unchanged after the rally of the second half of last week.
The major coins are rallying off their weekend lows, as Ethereum recovered all of its steep losses which were likely caused by series of margin call and forced selling, following the steep one-month long correction. Bitcoin is back above the key $2000 level, and the developing base pattern seems to be holding up the currency, in line with the “normal correction” theory. Should the majors break-out from their short-term declining trends in the coming period, long-term buy signals could be triggered across the board as the daily charts already show oversold readings.
Bitcoin, Daily Chart Analysis
The DAX remains in a short-term downtrend after last week’s rally stalled out near a strong resistance level. The index is pushed lower by the strength of the Euro, as the common currency is still gaining ground on the Dollar, although the momentum of the rise is weak. As the NASDAQ outperformed the DAX the slight global correction might be over, but new long-positions should only be opened above last week’s highs, while shorts can jump in at the current levels with a stop above the recent high.
DAX, 4-Hour Chart Analysis
Key Economic Releases on Monday
|14:30||US||Empire Manufacturing Index||9.8||15.2||19.8|
Key Economic Releases on Tuesday
|3:30||AUSTRALIA||Monetary Meeting Minutes||–||–|
|11:00||GERMANY||ZEW Economic Sentiment||17.6||18.6|
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