- The VIX is trading 5.34% higher and tested 30 again as volatility increases on Thursday.
- The price has been stopped by the 200 Simple Moving Average once again.
Fundamental backdrop
The news that Donald Trump's finances will be scrutinised was not taken well during the US session. Of course, this is also the election year so if the US President has any skeletons in his closet this could be very damaging. Adding to this, the backdrop of increasing coronavirus cases seems to have tipped the indices over the edge. Just yesterday the market noted another record day for the number of cases recorded.
Data today showed 1.31 million US citizens filed for state unemployment benefits in the latest week, down from 1.43 million in the previous week. Looking closer at the S&P 500 and CBOE are in the bottom three for the third day running but Mohawk Industries are the worst performer, down 20%. The company is facing a lawsuit over financial misconduct but today the losses accelerated as some analysts noted it could take months to find a resolution. On the upside, F5 Networks are at the top of the leaderboard after an upgrade by Morgan Stanley.
VIX daily chart
The VIX chart below shows that it has been another day of volatility. The price has risen over 5% in recent trade as the S&P struggles. The saving grace has been the 200 Simple Moving Average as it has provided the market with some resistance. Also, the 30 psychological level has been working as a resistance too.
On the downside, the key levels are marked by the two red horizontal support lines. The first one is the consolidation high from August 2019. It was then the equities markets were much calmer in an upward trajectory. The other is around 21.5 and this would send the price back into the historical range were once again the equities markets were in a more steady state.
All information and content on this website, from this website or from FX daily ltd. should be viewed as educational only. Although the author, FX daily ltd. and its contributors believe the information and contents to be accurate, we neither guarantee their accuracy nor assume any liability for errors. The concepts and methods introduced should be used to stimulate intelligent trading decisions. Any mention of profits should be considered hypothetical and may not reflect slippage, liquidity and fees in live trading. Unless otherwise stated, all illustrations are made with the benefit of hindsight. There is risk of loss as well as profit in trading. It should not be presumed that the methods presented on this website or from material obtained from this website in any manner will be profitable or that they will not result in losses. Past performance is not a guarantee of future results. It is the responsibility of each trader to determine their own financial suitability. FX daily ltd. cannot be held responsible for any direct or indirect loss incurred by applying any of the information obtained here. Futures, forex, equities and options trading contains substantial risk, is not for every trader, and only risk capital should be used. Any form of trading, including forex, options, hedging and spreads, contains risk. Past performance is not indicative of future FX daily ltd. are not Registered Financial Investment Advisors, securities brokers-dealers or brokers of the U.S. Securities and Exchange Commission or with any state securities regulatory authority OR UK FCA. We recommend consulting with a registered investment advisor, broker-dealer, and/or financial advisor. If you choose to invest, with or without seeking advice, then any consequences resulting from your investments are your sole responsibility FX daily ltd. does not assume responsibility for any profits or losses in any stocks, options, futures or trading strategy mentioned on the website, newsletter, online trading room or trading classes. All information should be taken as educational purposes only.
Recommended content
Editors’ Picks
USD/JPY holds positive ground around 151.50 following Japanese CPI data
The USD/JPY pair holds positive ground for the second consecutive day near 151.45 on Friday during the early Asian trading hours. The cautious approach from the Bank of Japan to keep monetary conditions accommodative exerts some selling pressure on the Japanese Yen.
AUD/USD depreciates on risk aversion amid a stronger US Dollar
AUD/USD extends its losses for the second successive session on Friday. However, market activity is expected to be subdued due to light trading on Good Friday. Meanwhile, the US Dollar strengthens as recent data indicates annualized economic expansion in the United States, driven by consumer spending.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Top 3 Price Prediction BTC, ETH, XRP: Retail watches from the sidelines with a bias for shorts
Bitcoin is showing strength as markets head into the Easter holidays. As it rises, altcoins are following suit, with Ethereum and Ripple posting almost similar gains. Meanwhile, there remains an unfilled CME Gap, with a lot of liquidity also resting above and below BTC price.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.