Buy Every Dip. Nothing changes on the SP500

Tomasz Wisniewski Axiory Global Ltd.

For the past few days SP500 follows every single rumour about the new tax plan. Yesterday, cards were finally shown and we received the details of the New Senate Tax bill. Apparently, it will not be as simple as expected and some cuts (like the corporate cuts) won't be implemented immediately. That is definitely not a positive information for the markets. If you are wondering why, let me remind you that vast majority of this year's upswing on stocks was made thanks to traders discounting the scenario of this tax cuts plan. Now, if this plan is not what they were expecting for, they may start to abandon their long positions and that actually was the first reaction here.

Let us see how the situation looks from the technical point of view. Additionally keeping in mind that recently every bad news is a good news for stocks, the situation does not look so bad. Yes, we had a drop but it was stopped on the mid-term up trendline (black) and on the horizontal support on the 2569 pts (green). What is more, the price performed a V-shape reversal. American indexes are well known for this formation. Most recently it happened on 19^th and 25^th of October (orange rectangles).

Yes, we do have some negative factors here, like the double top formation (grey, with MACD divergence) or the breakout of the red up trendline but the buyers have more arguments on their side. As long as the price stays above the green support, we do have a buy signal here with the potential target on the new all time highs.

Author

Tomasz Wisniewski

Axiory Global Ltd.

Tomasz was born in Warsaw, Poland on 25th October, 1985.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.