Elliott wave view in Dow Jones Futures (YM_F) suggests that the decline to 24604 ended wave ((W)) on June 3. This decline ended the cycle from May 1 high as a 3 waves zigzag Elliott Wave structure. Wave ((X)) bounce is currently in progress to correct the cycle from May 1 high in 3, 7, or 11 swing. The internal of wave ((X)) rally is unfolding as a zigzag Elliott...
Risk appetite is once again sour after Trump tweeted
and a Washington Post interview fuelled concerns over
political pressure on the Fed and trade woes anew.
The US President first tweeted that the US is put at a
‘big disadvantage’ as US rates are kept too high while
others are devaluing their currencies, explicitly
mentioning the EUR and CNY.
Stocks received a boost from the more positive wave of
headlines relating to a US-China trade deal. This led to a big
push in the equities markets, before things settled down.
Ranges are likely to hold before tonight's FOMC decision.
The trend is up and continuation breaks are favoured
if we get the dovish FOMC that everyone expects.
Trade AFTER the event -...
Short term Elliott Wave view on Dow Jones Future (YM_F) calls for the bounce to 25952 as wave (B). This move higher is a correction to the decline from April 24, 2019 peak.
In order to avoid a double correction in wave (B) and provide validity to this view, Dow Jones Future needs to break below wave ((i)) at 25215. However, technical analysis on US Sectors such...
The Fed's dovish shift in 2019 that pushed prices higher has been overshadowed by ramped up tension on the global trade front. This should continue to be a drag on investor sentiment until other factors prevail.
Our bias remains down on the Dow, as highlighted by the 55 SMA Slope and the fact we have not yet broken key resistance areas.
It will be tricky today....
Dow Jones remains the weakest US index and is in a downtrend as highlighted by the 55 SMA slope.
The downtrend is generated by the US/China trade war issues. Headline risk is present.
We favour further downside through the continuation level.
Dow Jones is the weakest US index.
Trend is down as highlighted by the key daily level break and the 55 SMA Slope.
Everyhing hinges on US/China trade talks so we would wait until the US Cash Open
before trading and would prefer a continuation break on bad news.
Directional movement is stalled currently, as highlighted by the lateral 55 SMA.
We need a break of either the short-term support or short-term resistance in order to start
trending movement again.
Patience is required for now.
The long bias was flipped by President Trump's new escalation of the US/China Trade War.
Whether it is a bluff or not is yet to be seen. For now, charts point lower.
Short-term resistance and continuation levels highlighted.