USA Premarket with the Bulls
This morning, U.S. stock futures are rising, continuing their recovery after a sharp drop on Monday. At 04:15 ET, Dow futures were up 0.6%, S&P 500 futures (Ticker AT: USA500) were up 0.8%, and Nasdaq 100 futures (Ticker AT: USATEC) were up 1%. Wall Street rebounded yesterday after three days of losses, with the Dow Jones gaining 0.8%, the S&P 500 up 1% and the Nasdaq Composite up 1%. Investors are cautiously optimistic following assurances from the Federal Reserve about avoiding a recession.
Disney's (NYSE: DIS) third-quarter results are expected, with challenges in television, parks and streaming. The BOJ has calmed global market jitters by saying it will not raise interest rates amid ongoing financial instability. This follows a recent rate hike and signs of further tightening. Corporate earnings reports continue globally, with notable moves in companies such as Novo Nordisk (Ticker AT: NVO.US), Puma (PUM.SE), Sony (TICKER AT (ADR): SNE.US) and SoftBank Group (TYO: 9984).
Looking at the chart we can see how today morning has generated a recovery zone, with the RSI oversold at 33.34% starting its recovery. If we look at the Check Point (POC) it is far bellow the current price and in the 4,000 point zone. It would be understandable to understand that the index is making a healthy and necessary price correction due to the constant rise of the index without any adjustment during the whole last year. Currently a cycle has closed and we will see if the bulls come back in force. Although it must also be understood that large long term investors have exited the market capitalizing heavily looking for opportunities and investing much of it in US bonds which currently have a lower opportunity cost than the equity market. If the current support does not hold, it is likely that it could be showing the beginning of a recession, if it does we could see a new upward push to the highs.
Ion Jauregui - ActivTrades Analyst
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Disney's (NYSE: DIS) third-quarter results are expected, with challenges in television, parks and streaming. The BOJ has calmed global market jitters by saying it will not raise interest rates amid ongoing financial instability. This follows a recent rate hike and signs of further tightening. Corporate earnings reports continue globally, with notable moves in companies such as Novo Nordisk (Ticker AT: NVO.US), Puma (PUM.SE), Sony (TICKER AT (ADR): SNE.US) and SoftBank Group (TYO: 9984).
Looking at the chart we can see how today morning has generated a recovery zone, with the RSI oversold at 33.34% starting its recovery. If we look at the Check Point (POC) it is far bellow the current price and in the 4,000 point zone. It would be understandable to understand that the index is making a healthy and necessary price correction due to the constant rise of the index without any adjustment during the whole last year. Currently a cycle has closed and we will see if the bulls come back in force. Although it must also be understood that large long term investors have exited the market capitalizing heavily looking for opportunities and investing much of it in US bonds which currently have a lower opportunity cost than the equity market. If the current support does not hold, it is likely that it could be showing the beginning of a recession, if it does we could see a new upward push to the highs.
Ion Jauregui - ActivTrades Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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