Sun, May 09, 2021 @ 23:28 GMT
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CAC Slips as European Stock Markets Under Pressure

The CAC index has lost ground in the Tuesday session. Currently, the index is at 5493.80 down 0.50% on the day. On the release front, French Flash GDP edged up to 0.6%, beating the estimate of 0.5%. Eurozone Preliminary Flash GDP for the fourth quarter remained unchanged at 0.6%, matching the forecast. Later in the day, the eurozone releases Preliminary CPI for Q4, with the markets braced for a decline of 0.5%. As well, President Trump will deliver his State of the Union address before Congress. On Wednesday, the eurozone releases CPI Flash Estimate. In the US, the Federal Reserve will release a monetary policy statement, with the markets expecting the benchmark rate to remain unchanged at a range between 1.25%-1.50%.

DAX Under Pressure After Global Stock Markets Slip

The DAX is showing little movement in the Monday session. Currently, the index is trading at 13,234.50, down 0.68% since the close on Monday. On the release front, Eurozone Preliminary Flash GDP for the fourth quarter remained unchanged at 0.6%, matching the forecast. Later in the day, the eurozone releases Preliminary CPI for Q4, with the markets braced for a decline of 0.5%. In the US, Consumer Confidence is expected to rise to 123.2 points. As well, President Trump will deliver his State of the Union address before Congress. Wednesday will be busy. Germany releases retail sales and the eurozone will publish CPI Flash Estimate. Investors will be keeping an eye on the Federal Reserve, which releases a monetary policy statement, with the markets expecting the benchmark rate to remain unchanged at a range between 1.25%-1.50%.

Rise In Global Bond Yields To Test Equity Investors’ Confidence

After enjoying the best kickoff in more than three decades, the S&P 500 posted its biggest decline since 17 August 2017. All ten sectors traded in red territory suggesting that we didn't see any rotation, but the selloff was broad-based led by Energy, Utilities, and Telecom sectors.

Elliott Wave View: DXY In Double Correction

DXY Dollar Index Short Term Elliott Wave view suggests that decline to 88.44 ended Intermediate wave (3). Up from there, Intermediate wave (4) bounce is unfolding as a double three Elliott Wave structure where Minor wave W ended at 89.58 and Minor wave X ended at 88.723. Minor wave Y is in progress with Minute wave ((w)) ended at 89.619 and while Minute wave ((x)) pullback stays above 88.723, Index should extend higher in Minute wave ((y)) of Y towards 89.88 – 90.59 area. The rally should also complete Intermediate wave (4) and Index should then resume the decline lower or at least pullback in 3 waves. We don’t like buying the proposed bounce and expect sellers to appear in the above area for at least a 3 waves pullback.

DAX Quiet in Light Economic Start to Week

The DAX is showing little movement in the Monday session. Currently, the index is trading at 13,334.50, down 0.04% since the close on Friday. On the release front, there is just one eurozone indicator. German Import Prices slowed to 0.3%, matching the estimate. On Tuesday, Germany releases Primary CPI and the eurozone publishes Preliminary Flash GDP for fourth quarter 2016. In the US, President Trump will deliver the State of the Union address.

DAX Dips as ECB Dovish on Stimulus

The DAX is almost unchanged in the Friday session. Currently, the index is trading at 13,293.50, down 0.04% on the day. On the release front, there are no major eurozone events. Investors will be keeping a close eye on US Advance GDP, which is expected to post a strong gain of 3.0%

US 500 Index Posts Fresh Record High, RSI Could Be Pointing To Overextended Market

The US 500 index hit a fresh all-time high of 2,842.60 during today’s trading. The Tenkan-sen line remains above the Kijun-sen line – with both lines maintaining a positive slope – and the RSI indicator continues to rise. All these are indicative of the positive momentum that is in place. However, the RSI is well above the 70 overbought level at 84. This could be a sign of an overstretched market, rendering a pullback in the near-term a possibility.

Global Stocks Boosted by Renewed Risk Appetite

Investors marched into Tuesday's trading session adopting a "risk-on" attitude after US lawmakers reached a deal to end a government shutdown. Asian stock markets ventured higher during early trading on Tuesday, following Wall Street's record gains overnight. In Europe, shares climbed to fresh highs as optimism over sustained global growth continued to boost risk sentiment. With Wall Street powering to all-time highs on Monday as markets cheered the end of a three-day government shutdown, US stocks could remain buoyed by the positive sentiment this afternoon.

US 100 Index Trades Near Record High; RSI Overbought

The US 100 index is currently trading close to its all-time high of 6,844.45 hit during Friday's trading. Rising prices in recent weeks are setting a bullish picture for the index in the short-term. The RSI, which has been heading higher throughout this period, is supporting the view for a positive market bias. The indicator though has crossed above the 70 overbought level; this being interpreted as increased risk for a pullback in the short-term.

Stocks Regain Poise after Tuesday’s Plunge But Correction Risks Remain High

After yesterday's sizeable drop on Wall Street, which saw the Dow plunge over 350 points from its high to the low, US index futures have bounced back strongly. Investors, who have repeatedly ignored warnings that stocks – especially in the US – are considerably overvalued both from technical and fundamental points of view, are doing it again, it seems. At the time of this writing, the Dow futures were up a cool 130 points while S&P futures were 9 points higher. But it remains to be seen whether the sellers will step in again after Wall Street opens for trading later.

CAC Yawns As Eurozone Inflation Inches Lower

The CAC index is unchanged in the Wednesday session. Currently, the index is at 5510.80, down 0.05% on the day. On the release front, there were no surprises from Eurozone Final CPI, which dropped from 1.5% to 1.4%, matching the forecast. Eurozone Final Core CPI came in at 0.9%, as expected.

US 30 Index Exceeds 26,000 to Record Fresh All-time High; Bullish though RSI Overbought

The US 30 index rose to a fresh record high of 26,084.50 during today's trading after significant advancing in the days that preceded. The positively aligned and steep upward sloping Tenkan- and Kijun-sen lines are indicative of the bullish sentiment that is in place in the short-term. The RSI, which is rising as well, is also supporting the view for bullish momentum. The indicator though is well above the 70 overbought level, hinting to the possibility for a pullback from record high levels.

CAC Hits 10-Week High, Eurozone CPI Next

The CAC index has posted slight losses in the Tuesday session. Currently, the index is at 5523.50, up 0.25%. On the release front, the France's government deficit widened to EUR 84.7 billion, a 3-month high. On Wednesday, the eurozone releases Final CPI.

DAX Jumps, Investors Eye Eurozone CPI

The DAX has posted gains in the Tuesday session. Currently, the index is trading at 13,306.50, up .80%. On the release front, there are no major German or eurozone releases. German inflation numbers were a mixed bag. Final CPI improved to 0.6%, matching the forecast. WPI declined 0.3%, missing the estimate of +0.3%. On Wednesday, the eurozone releases Final CPI.

DAX Subdued in Quiet Day for Fundamentals

The DAX has started the week with slight losses. In the Monday session, the index is at 13,205.50, down 0.30% on the day. On the release front, there is only one indicator, as trade surplus climbed to EUR 22.5 billion, edging above the estimate of EUR 22.4 billion. US markets are closed for Martin Luther King Day.

Elliott Wave View: DAX Looking To End Correction

DAX Short Term Elliott Wave view suggests that the decline to 12731.46 ended Intermediate wave (X). Up from there, rally is unfolding as a 5 waves impulsive Elliott Wave structure where Minutte wave (i) ended at 12943, Minutte wave (ii) ended at 12881.5, Minutte wave (iii) ended at 13408.5, Minutte wave (iv) ended at 13328.5, and Minutte wave (v) of ((a)) ended at 13421.5. Minute wave ((b)) pullback is currently in progress to correct cycle from 1/2/2018 low before the rally resumes.

Elliott Wave View: DAX Correction In Progress

DAX Short Term Elliott Wave view suggests that Intermediate wave (X) ended at 12731.46. Rally from there is unfolding as a 5 waves impulsive Elliott Wave structure where Minutte wave (i) ended at 12943, Minutte wave (ii) ended at 12881.5, Minutte wave (iii) ended at 13408.5, Minutte wave (iv) ended at 13328.5, and Minutte wave (v) of ((a)) is proposed complete at 13421.5. Index is correcting cycle from 1/2/2018 low within Minute wave ((b)) in 3, 7, or 11 swing before the rally resumes.

CAC Edges Lower as French Industrial Production Contracts

The CAC index has rolled off five straight winning sessions, but is in red territory in the Wednesday session. Currently, the index is at 5506.50, down 0.34%. It's a light day on the release front, with no eurozone indicators. French Industrial Production disappointed, posting a decline of 0.5%, edging below the estimate of -0.4%. On Thursday, the eurozone releases Industrial Production and the ECB will publish the minutes of the December policy meeting.

UK 100 Index Posts Record High Though RSI Overbought

The UK 100 index hit a fresh all-time high of 7,756.10 during today's trading, with the index posting a notable rally since the beginning of December. The Tenkan- and Kijun-sen lines are positively aligned, pointing to a bullish picture in the short-term. The RSI is supporting this view: the indicator remains on the rise, though it has crossed above the 70 overbought level, rendering a short-term pullback a possibility.

DAX Slips, Investors Eye ECB Minutes

The DAX has posted considerable losses in the Wednesday session. Currently, the index is at 13,291.50, down 0.71% on the day. On the release front, there are no German or eurozone indicators. On Thursday, the eurozone releases Industrial Production and the ECB will publish the minutes of the December policy meeting.

Elliott Wave View: DAX Still In Wave (v)

DAX Short Term Elliott Wave view suggests that pullback to 12731.46 ended Intermediate wave (X). Up from there, rally is unfolding as a 5 waves impulsive Elliott Wave structure where Minutte wave (i) ended at 12943, Minutte wave (ii) ended at 12881.5, Minutte wave (iii) ended at 13408.5, and Minutte wave (iv) is proposed complete at 13328.5. Short term, while above 13228.5, Index has scope to extend another leg higher in Minutte wave (v) before ending 5 waves up from 1/2 low (12731.46).

CAC Rally Continues, Investors Eye French Industrial Production

The CAC index has posted gains in the Monday session. Currently, the index is at 5515.00, up 0.50%. On the release front, France's trade deficit widened to EUR 5.7 billion, above the forecast of EUR 4.8 billion. This marked the highest trade deficit since August.

Elliott Wave View: DAX Ending 5 Waves

DAX Short Term Elliott Wave view suggests that the Index ended Intermediate wave (X) pullback at 12731.46. The rally from there is unfolding as a 5 waves impulse Elliott Wave structure where Minutte wave (i) ended at 12943, Minutte wave (ii) ended at 12881.5, Minutte wave (iii) ended at 13408.5, and Minutte wave (iv) is proposed complete at 13328.5. Index has scope to extend 1 more leg higher in Minutte wave (v) before ending 5 waves up from 1/2 low (12731.46).

CAC Rally Continues as Eurozone Indicators Beat Estimates

The CAC index has posted gains in the Monday session. Currently, the index is at 5487.50, up 0.31%. On the release front, there are no French events on the schedule. In the Eurozone, the week started on a positive note. Sentix Investor Confidence improved to 32.9, above the estimate of 31.5 points. Retail Sales rebounded with a strong gain of 1.5%, beating the estimate of 1.4%.

DAX Rallies to 2-Week High, German Retail Sales Sparkles

The DAX continues to head higher and has posted strong gains in the Friday session. Currently, the index is at 13,310.50, up 1.08% on the day. The DAX is currently at its highest level since December 19 and has jumped 3.2% this week. On the release front, German Retail Sales jumped 2.3%, crushing the estimate of 1.0%. This easily beat the estimate of 1.0%. Eurozone CPI Flash Estimate ticked lower to 1.4%, but matched the forecast. In the US, the focus remains on employment data, led by Nonfarm Payrolls. The markets are braced for the indicator to slow down to 190 thousand.

Elliott Wave View: Nasdaq Ending Impulsive Move

Short Term Nasdaq Elliott Wave view suggests that the rally from 12/5 low unfolded as a double three Elliott Wave structure where Minor wave W ended at 6545.75 and Minor wave X ended at 6383.25. This week, the Index made a new high above Minor wave W at 6545.75, suggesting the next leg higher has started. Internal of Minor wave W unfolded as a double three Elliott Wave structure where Minute wave ((w)) ended at 6427.75, Minute wave ((x)) ended at 6383, and Minute wave ((y)) of W ended at 6545.75.

Elliott Wave View: Nasdaq Has Resumed Higher

Elliott Wave view for Nasdaq suggests that the rally from Intermediate wave (4) on 12/5 unfolded as a double three Elliott Wave structure where Minor wave W ended at 6545.75 and Minor wave X ended at 6383.25. The Index has made a new high above Minor wave W at 6545.75, which brings validity to this view. Subdivision of Minor wave W unfolded as a double three Elliott Wave structure where Minute wave ((w)) ended at 6427.75, Minute wave ((x)) ended at 6383, and Minute wave ((y)) of W ended at 6545.75.

Elliott Wave Analysis On Crude Oil and S&P500

Crude oil is bullish and unfolding a nice clear five wave pattern, which we labeled as a higher degree wave 5) in progress. Current strong five-wave rally that is on display away from 57.60 level can be labeled as black sub-wave 3 of 5), with potential top and resistance coming in at around the upper Elliott wave channel line. From there, a new three-wave pullback as black wave 4 can follow, and search for potential support and a turning point region around the 60.27/60.71 level.

US 500 Index Crosses above 2,700 to Record All-time High; Looking Bullish in Short- and Medium-Term

The US 500 index recorded an all-time high of 2,701.80 during today's trading. A positive close would mark the second straight day of advancing after gaining 0.8% on Tuesday. The Tenkan- and Kijun-sen lines are positively aligned, with the former being above the latter. This is pointing to positive momentum in the short-term. The stochastics are also painting a bullish picture in the very-short-term: the %K line has moved above the slow %D line and both lines are heading higher.

DAX30 Equidistant Channel is Trapping the Price

As the EUR continues its strength against the USD, this may not be good for unhedged exporters on the Dax30 and future earnings. Yesterday we saw a continuation of the selling, but it has since then retraced. Commodities prices continue to increase, but this has only a minor bearing on the Dax30.