A gloomy Day on Wall Street
by dodjit.com
The sun wasn’t shinning during yesterday’s U.S stock session, as bearish traders sparked an intraday sell-off at the start of the session. The catalyst of the session was the retail sales figure showing that bullish investors might be getting a little bit too ahead of themselves. The report showed that U.S retail sales had contracted in the Month of April, while business inventories dropped yet again showing a -1.0% figure.
In addition, U.S foreclosures for the month of April jumped to a record high, showing that the housing sector is far from a stable recovery. By taking a glance at the home builder’s index, one used often to see the state of the sector; one can see the market’s skepticism, as the index has dropped this week by an enormous percentage, wiping out three weeks of gains.
As stated above, stocks dropped at the start of the session on gloomy data and traded at their lows of the day. The S&P500 shredded -2.69%, while the Nasdaq closed the session in red, down by over 3%.
According to Yahoo, ‘The Obama administration is now expected to expand its mortgage aid program today, announcing new measures that could help homeowners avoid a blemished credit record even if they don’t qualify for other assistance’.
The Asian markets felt some heat Thursday morning, as negative momentum from the U.S sparked selling pressure, sending the major indices plummeting. The NIKKEI dropped at the start of the session and is now trading down by over 3%. The Hong Kong’s Hang Seng Index tumbled by over 3%, dragged down by financials.
The Dollar is fighting for Strength
On the Forex market the Dollar index managed to gain some strength during yesterday’s intraday session but failed to show any signs of a change in trend. One must note that despite a declining equity market, caused by increasing fear that the economic recession isn’t going to end in 2010, the Dollar safe haven is failing to show any major strength.
As one may recall, the Dollar has been classed as a safe haven over the last couple of months. Recent price action from equities hasn’t caused a major shift back into Dollar safe haven assets, which is so far signaling that the current declining pattern in equities could only be a mere correction.
Economic data and news event should be observed carefully, as current sentiment levels could easily be dragged down, considering data doesn’t show an improvement. This situation could weigh on the recent rally extending the current correction much further than what is normally classed a healthy one.
On individual pairs the EUR/USD managed to hold its ground during yesterday’s session, despite the selling pressure. This pair is now trading just below its prior high of 1.3735 after forming a bearish engulfing like candlestick. When observing the price pattern more carefully one can see that this pair is still trading within its secondary bullish trend.
The USD/CAD made an impressive turnaround yesterday, bouncing off recent support. From a low of 1.15, the Dollar/ Cad pair has now retraced back to the 1.1732 level. Even though this pair is showing mild strength, resistance of 1.1769 should be taken into consideration.
The USD/JPY is still trading above its neckline support, further information can be found on yesterday’s report.
The Pound lost its steam during yesterday’s trading day as Governor Mervyn King said that the economy will probably face a slow recovery. He also mentioned that the economic outlook still remains uncertain and GDP results will probably show depressing figures.
Market Data to watch Out For
Major market moving data is scheduled to be released tomorrow, with GDP figures coming out from Europe and inflation numbers scheduled to be released from the U.S. Despite that fact, the U.S will continue to lead the global markets today, releasing its PPI figures. Even though the PPI numbers aren’t as closely watched as the CPI figures, they can often hint whether inflation problems are starting to rise or not.
Analyses of the charts, including indicators and extra data are avalible at dodjit website
Enjoy
dodjit
by dodjit.com
The sun wasn’t shinning during yesterday’s U.S stock session, as bearish traders sparked an intraday sell-off at the start of the session. The catalyst of the session was the retail sales figure showing that bullish investors might be getting a little bit too ahead of themselves. The report showed that U.S retail sales had contracted in the Month of April, while business inventories dropped yet again showing a -1.0% figure.
In addition, U.S foreclosures for the month of April jumped to a record high, showing that the housing sector is far from a stable recovery. By taking a glance at the home builder’s index, one used often to see the state of the sector; one can see the market’s skepticism, as the index has dropped this week by an enormous percentage, wiping out three weeks of gains.
As stated above, stocks dropped at the start of the session on gloomy data and traded at their lows of the day. The S&P500 shredded -2.69%, while the Nasdaq closed the session in red, down by over 3%.
According to Yahoo, ‘The Obama administration is now expected to expand its mortgage aid program today, announcing new measures that could help homeowners avoid a blemished credit record even if they don’t qualify for other assistance’.
The Asian markets felt some heat Thursday morning, as negative momentum from the U.S sparked selling pressure, sending the major indices plummeting. The NIKKEI dropped at the start of the session and is now trading down by over 3%. The Hong Kong’s Hang Seng Index tumbled by over 3%, dragged down by financials.
The Dollar is fighting for Strength
On the Forex market the Dollar index managed to gain some strength during yesterday’s intraday session but failed to show any signs of a change in trend. One must note that despite a declining equity market, caused by increasing fear that the economic recession isn’t going to end in 2010, the Dollar safe haven is failing to show any major strength.
As one may recall, the Dollar has been classed as a safe haven over the last couple of months. Recent price action from equities hasn’t caused a major shift back into Dollar safe haven assets, which is so far signaling that the current declining pattern in equities could only be a mere correction.
Economic data and news event should be observed carefully, as current sentiment levels could easily be dragged down, considering data doesn’t show an improvement. This situation could weigh on the recent rally extending the current correction much further than what is normally classed a healthy one.
On individual pairs the EUR/USD managed to hold its ground during yesterday’s session, despite the selling pressure. This pair is now trading just below its prior high of 1.3735 after forming a bearish engulfing like candlestick. When observing the price pattern more carefully one can see that this pair is still trading within its secondary bullish trend.
The USD/CAD made an impressive turnaround yesterday, bouncing off recent support. From a low of 1.15, the Dollar/ Cad pair has now retraced back to the 1.1732 level. Even though this pair is showing mild strength, resistance of 1.1769 should be taken into consideration.
The USD/JPY is still trading above its neckline support, further information can be found on yesterday’s report.
The Pound lost its steam during yesterday’s trading day as Governor Mervyn King said that the economy will probably face a slow recovery. He also mentioned that the economic outlook still remains uncertain and GDP results will probably show depressing figures.
Market Data to watch Out For
Major market moving data is scheduled to be released tomorrow, with GDP figures coming out from Europe and inflation numbers scheduled to be released from the U.S. Despite that fact, the U.S will continue to lead the global markets today, releasing its PPI figures. Even though the PPI numbers aren’t as closely watched as the CPI figures, they can often hint whether inflation problems are starting to rise or not.
Analyses of the charts, including indicators and extra data are avalible at dodjit website
Enjoy
dodjit