Share:

Emini S&P December futures still just drifting aimlessly after the long holiday weekend. We are still holding just above minor support at 4542/38 to keep bulls in control & perhaps on the next leg higher we can reach my next target of 4591/94, perhaps as far as 4615/19 eventually.

Strong support again at 4542/38. Longs need stops below 4533.

A break lower risks a slide to 4505/00 & even 4480/75 is possible.

Chart

Nasdaq December futures edged higher to 16173 last week as we look for 16300 next target. Further gains can target 16390/410.

We have held a very tight range from around 15940/920 up to 16090/16120 for a week.

The best buying opportunity should be at 15850/830 & longs need stops below 15770. We should also have strong support at 15700/660.

Chart

Emini Dow Jones December continues higher through 35080/35100 to my next targets of 35170/190 & 35230 & now we are edging above 35400/450, so we look for 35570/590. Further gains this week can target 35650/670.

Support again at 35390/360. Longs need stops below 35250.

Chart

Global stock index and Dollar movement

  • Global stock indexes advanced on Tuesday.

  • The U.S. dollar fell to a 3-1/2 month low, marking its biggest monthly drop in a year.

  • Federal Reserve official signals that the central bank may consider rate cuts if inflation continues to ease.

Fed Governor Christopher Waller's comments

  • Waller suggested the possibility of lowering the Fed policy rate in the coming months if inflation continues to decrease.

  • He expressed increasing confidence that the current interest rate setting would be sufficient to lower inflation to the Fed's 2% target.

Fed Governor Michelle Bowman's remarks

  • Bowman mentioned that the central bank might need to raise borrowing costs further to bring inflation back down to its target.

Market response and rate cut expectations

  • Traders increased bets for the first rate cut, with March being a possibility.

  • Probability for a 25 basis-point cut rose to nearly 33% from 21.5% on Monday, according to CME Group's Fedwatch tool.

  • Majority expected a cut, at least one notch, in May.

Wall Street indexes performance

  • Wall Street indexes closed higher.

  • Dow Jones rose 0.24%, S&P 500 gained 0.10%, and Nasdaq Composite added 0.29%.

US consumer confidence survey

  • A survey showed U.S. consumer confidence rose in November after three months of declines.

  • However, households still anticipated a recession over the next year.

Upcoming economic data

  • The spotlight will be on the U.S. October personal consumption expenditures report (PCE), including core PCE (Fed's preferred inflation measure).

  • Euro zone consumer inflation figures are expected to provide clarity on price and monetary policy directions.

US Treasury yields and Dollar Index

  • After the Fed commentary, U.S. Treasury yields dipped, with benchmark 10-year notes down 6 basis points.

  • Dollar index fell 0.368%, with the euro up 0.32% to $1.0988.

Currency movements

  • Japanese yen strengthened 0.82% against the greenback.

  • Sterling was last trading at $1.2694, up 0.55% on the day.

Gold prices

  • Spot gold prices were up 1.4% at $2,040.79 an ounce, hitting their highest level since May.

Oil prices

  • Oil prices settled higher on the possibility of OPEC+ extending or deepening supply cuts, a storm-related drop in Kazakh oil output, and the weaker U.S. dollar.

  • U.S. crude settled up 2.07% at $76.41 per barrel, and Brent settled at $81.68, up 2.13% on the day.

Australian and New Zealand Dollars

  • Australian dollar held near a four-month peak.

  • New Zealand dollar scaled a roughly four-month top of $0.61495.

  • Australian inflation data and a rate decision from the Reserve Bank of New Zealand are awaited.

Share: Feed news

The contents of our reports are intended to be understood by professional users who are fully aware of the inherent risks in Forex, Futures, Options, Stocks and Bonds trading. INFORMATION PROVIDED WITHIN THIS MATERIAL SHOULD NOT BE CONSTRUED AS ADVICE AND IS PROVIDED FOR INFORMATION AND EDUCATION PURPOSES ONLY.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

EUR/USD consolidates gains above 1.0800, awaits Fed Minutes

EUR/USD consolidates gains above 1.0800, awaits Fed Minutes

EUR/USD is holding gains above 1.0800 early Wednesday, having hit two-week highs on Tuesday. The US Dollar remains broadly weak, despite a mixed market mood, as investors weigh Fed rate cut bets and US government shutdown risks ahead of the Fed Minutes. 

EUR/USD News

GBP/USD clings to gains above 1.2600, all eyes on FOMC Minutes

GBP/USD clings to gains above 1.2600, all eyes on FOMC Minutes

GBP/USD is holding the renewed upside above 1.2600 in early Europe on Wednesday. The pair continues to draw support from hawkish comments from BoE Governor Bailey and an extended US Dollar weakness. The focus now shifts to the Fed Minutes, BoE- and Fed-speak.

GBP/USD News

Gold buyers retain control, with eyes on Fed Minutes

Gold buyers retain control, with eyes on Fed Minutes

Gold price sits at multi-day highs near $2,030 ahead of the Fed Minutes. US Dollar stays weak with the US Treasury bond yields, despite a tepid risk tone. Gold buyers flex muscles after recapturing 21-day SMA near $2,025. RSI flips bullish.  

Gold News

Bitcoin is 23% away from ATHs, but retail is still not here, why?

Bitcoin is 23% away from ATHs, but retail is still not here, why?

Bitcoin’s journey so far has been nothing short of shocking. From ETF approval to countries warming up to crypto regulation, the crypto landscape seems to have changed quite a bit.

Read more

Lots of dovish talk going around

Lots of dovish talk going around

The conversation around lower rates has been a theme this week after US data disappointed, Canada CPI came in soft, BoE Bailey offered up dovish comments, and China slashed rates.

Read more

Majors

Cryptocurrencies

Signatures