The Indices lost their Steam
What started off as an intraday rally, turned out only to be another usual session on Wall Street as the major U.S stock indices lost their steam throughout the day. Non Farm Payrolls had a major impact on the start of the day as the result came out much lower than expected, showing that the economy had shredded fewer jobs throughout the month of May. Even though unemployment jumped to a whopping 9.4%, investors looked past the figure, driving stocks higher. One must note that in previous reports we mentioned that the market are expecting a double digit unemployment rate by the end of this year, one that could even reach over 10.5%. High unemployment is already being baked into the markets price, causing the indices to climb.
“Buy the Rumor, Sell the Fact”
The sector that had the most influence on the session was the material sector, closing with a loss of -1.43%. Technologies managed to hold their ground, closing the session with a daily gain of 1%. From a technical point of view the major indices are still managing to hold their strength, failing to present any major turnaround. Weekly charts are presenting a glorifying picture, as the Nasdaq has broken its 50 weekly moving average. The S&P500 and the Dow Jones still have that resistance to overcome.
Profit taking after Friday’s Dollar rally
On the Forex market the Dollar opened mixed Monday morning climbing against the Euro, but decreasing against the Yen. As explained on the weekly report, the Dollar presented an enormous turnaround during Friday’s trading day, propelled by a surge on yields on the higher end of the curve. (Further information is explained in the weekly report).
The pound continued to take a hit Monday morning as political problems further weighed on the currency. Even though the current correction isn’t yet signaling a change in trend, the massive four day drop has now concerned investors, especially as the U.K’s economy is still far from out of the woods, politically and economically. The charts also showed a problematic situation as the GBP/USD presented signs of a reversal candle on the weekly chart. From a technical point of view the chart presented an inverted hammer type candle stick, one that often points to further weakness.
The Japanese economy showed a slight increase early morning as the economy released that bankruptcies had declined, allowing sentiment to rise. According to Bloomberg news, the economy is now showing a dramatic improvement something that is leading to improving confidence among Japanese merchants. The Dollar backed down against the Yen Monday morning, but managed to hold most of its relative strength.
Economic Data to Watch Out For
The economic calendar is relatively light on data today; therefore the currency pairs will take their cue from the U.S session. Even though Canada is scheduled to release its housing starts prior to the U.S open, investors will be anxious to see how the stock session begins, especially after Friday’s mixed close.
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Dodjit
What started off as an intraday rally, turned out only to be another usual session on Wall Street as the major U.S stock indices lost their steam throughout the day. Non Farm Payrolls had a major impact on the start of the day as the result came out much lower than expected, showing that the economy had shredded fewer jobs throughout the month of May. Even though unemployment jumped to a whopping 9.4%, investors looked past the figure, driving stocks higher. One must note that in previous reports we mentioned that the market are expecting a double digit unemployment rate by the end of this year, one that could even reach over 10.5%. High unemployment is already being baked into the markets price, causing the indices to climb.
“Buy the Rumor, Sell the Fact”
The sector that had the most influence on the session was the material sector, closing with a loss of -1.43%. Technologies managed to hold their ground, closing the session with a daily gain of 1%. From a technical point of view the major indices are still managing to hold their strength, failing to present any major turnaround. Weekly charts are presenting a glorifying picture, as the Nasdaq has broken its 50 weekly moving average. The S&P500 and the Dow Jones still have that resistance to overcome.
Profit taking after Friday’s Dollar rally
On the Forex market the Dollar opened mixed Monday morning climbing against the Euro, but decreasing against the Yen. As explained on the weekly report, the Dollar presented an enormous turnaround during Friday’s trading day, propelled by a surge on yields on the higher end of the curve. (Further information is explained in the weekly report).
The pound continued to take a hit Monday morning as political problems further weighed on the currency. Even though the current correction isn’t yet signaling a change in trend, the massive four day drop has now concerned investors, especially as the U.K’s economy is still far from out of the woods, politically and economically. The charts also showed a problematic situation as the GBP/USD presented signs of a reversal candle on the weekly chart. From a technical point of view the chart presented an inverted hammer type candle stick, one that often points to further weakness.
The Japanese economy showed a slight increase early morning as the economy released that bankruptcies had declined, allowing sentiment to rise. According to Bloomberg news, the economy is now showing a dramatic improvement something that is leading to improving confidence among Japanese merchants. The Dollar backed down against the Yen Monday morning, but managed to hold most of its relative strength.
Economic Data to Watch Out For
The economic calendar is relatively light on data today; therefore the currency pairs will take their cue from the U.S session. Even though Canada is scheduled to release its housing starts prior to the U.S open, investors will be anxious to see how the stock session begins, especially after Friday’s mixed close.
Enjoy the full article at dodjit website
best
Dodjit