Wednesday Market Recap
|Asset||Current Value||Daily Change|
|WTI Crude Oil||45.30||0.52%|
Investors might have felt quite a bit of nostalgia today, as Fed Chair Janet Yellen followed the tradition Alan Greenspan and Ben “Helicopter” Bernanke when she voiced her concerns about the future of the economy. While we agree with her on the risks regarding growth, but we can’t help but wonder if her words were more a reaction to the recent correction in the NASDAQ than anything else. After all, the Federal Reserve supposed to be data-dependant regarding its decisions, just it looks like not economic rather market data dependant.
Jokes aside, all major stock indices jumped higher after the speech, and the DOW got very close to its all-time highs on the process, with the NASDAQ also recovering above crucial resistance, possibly signaling another rally attempt from the broader market. On an interesting note, and confirming the European Central Bank’s role in following the Fed, the Euro actually fell against the Greenback after Yellen’s testimony and that might signal a durable correction in the most important currency pair.
The Canadian Dollar is also rallying after the BOC’s expected rate hike, and we have to wait and see if the new lows will be durable or a sell-the-news will eventually follow.Commodities are also higher with gold finally leaving the vicinity of the $1200 level, and possibly starting a new upswing after the post-Fed decline. Oil also jumped on the news that US inventories declined by more than expected, while Yellen also gave a boost to the whole segment.
Gold Futures, 4-Hour Chart Analysis
The crypto market settled down after the strong moves on Sunday and Monday, with the majors all rallying off their lows amid the declining volatility. Ethereum recovered above the $200 level once again, and although it’s yet to pass any major technical hurdles, the long-term picture still suggests that a tradable low is already in. Small cap coins are also trading slightly higher yesterday’s levels, but compared to the recent decline, the bounce is relatively weak, and the short-term resistance levels still hold back the currencies.
Ethereum, 4-Hour Chart Analysis
The NASDAQ is at a critical point after the Yellen-rally, as it got up to the declining trendline that defines the current correction in the tech benchmark. The 5800 resistance is also just ahead of the index, end that could provide a good entry point for traders who expect a deeper correction, as the short-term MACD indicator is also approaching oversold territory.
NASDAQ 100 Futures, 4-Hour Chart Analysis
Key Economic Releases on Wednesday
|16:00||CANADA||BOC Rate Decision||0.75%||0.75%||0.5%|
|16:00||UK||Janet Yellen Testifies||–||–||–|
|16:30||US||Crude Oil Inventories||-7.6 mill||-3.2 mill||-6.3 mill|
Key Economic Releases on Thursday
|Tent.||CHINA||Trade Balance||273 bill||282 bill|
|14:30||US||Initial Jobless Claims||244,000||248,000|
Featured image from Flickr (credits: DonkeyHotey)