News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Wall Street Futures Update: Dow Jones (-0.003%) S&P 500 (+0.073%) Nasdaq 100 (+0.021%) [delayed] -BBG
  • (Sentiment Weekly) Japanese Yen, Swiss Franc Analysis: USD/JPY, USD/CHF May Fall as Long Bets Rise #Yen #Franc $USDJPY $USDCHF https://www.dailyfx.com/forex/technical/article/special_report/2021/04/14/Japanese-Yen-Swiss-Franc-Analysis-USDJPY-USDCHF-May-Fall-as-Long-Bets-Rise.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/6EXLAB614y
  • Retail traders appear to be reducing long exposure in the Euro after recent gains. This hints that EUR/USD and EUR/JPY may rise in the near term, but could this trend last down the road? Find out from @ddubrovskyFX here:https://t.co/Y1d4DXeKEE https://t.co/JmGCbxkfWp
  • Gold Prices Probe Barrier as Inflation Data Sinks the USD and Yields https://www.dailyfx.com/forex/market_alert/2021/04/14/Gold-Prices-Probe-Barrier-as-Inflation-Data-Sinks-the-USD-and-Yields-.html https://t.co/bdNaQQsMqu
  • The Indian Rupee rose as the Nifty 50 slightly fell after the RBI left benchmark rates unchanged despite recent weakening inflation and a massive fiscal spending plan. Will USD/INR bounce? Find out from @ddubrovskyFX here:https://t.co/SwufKMOwfQ https://t.co/R2XfXKiRT5
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.65%, while traders in France 40 are at opposite extremes with 80.44%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/gxv7FwyhsM
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.50% 🇦🇺AUD: 0.26% 🇬🇧GBP: 0.16% 🇨🇭CHF: 0.11% 🇪🇺EUR: 0.10% 🇨🇦CAD: -0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/hQBjkAnaA1
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: France 40: 0.35% Germany 30: 0.04% US 500: 0.00% FTSE 100: -0.06% Wall Street: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/VrybX61UEU
  • British Pound Price Outlook: GBP/USD, GBP/JPY Poised to Extend Climb - https://www.dailyfx.com/forex/technical/home/analysis/gbp-usd/2021/04/14/British-Pound-Price-Outlook-GBPUSD-GBPJPY-Poised-to-Extend-Climb.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $GBP $GBPUSD $GBPJPY https://t.co/rDOIqMJQfk
  • The US Dollar may extend gains against the Thai Baht. But, its price action within USD/SGD, USD/PHP and USD/IDR seem to be favoring more range-bound trading conditions. Get your market update from @ddubrovskyFX here:https://t.co/DYCLXAFcCr https://t.co/q3hRzYvE7n
Dow Jones Looks to Service Sector After Technical Resistance Halts Rally

Dow Jones Looks to Service Sector After Technical Resistance Halts Rally

Peter Hanks, Strategist

Stock Market Talking Points:

  • The Dow Jones will look for Tuesday’s service sector data to revive optimism and re-test technical resistance
  • ISM non-manufacturing data is due at 8:00 AM EST, expected 57.3 versus 56.7 previous
  • View our economic calendar for real-time data updates on all the major economies

See how IG clients are positioned on the Dow Jones, Crude oil and the US Dollar with our free IG Client Sentiment Data.

Tuesday’s equity session has a lot to look for with the Dow Jones and S&P 500 now in precarious territory below key technical resistance. ISM non-manufacturing and services data is due before market open and will likely dictate sentiment and direction early in the equity session as services make up over two thirds of US GDP. With that in mind, XLP - an ETF that tracks the performance of US consumer staples - could be a source of volatility in the equity space during tomorrow’s New York session.

Dow Jones Price Chart: Daily Time Frame (October 2018 – March 2019) (Chart 1)

XLP ETF price chart

Dow Jones Price Chart overlaid with ratio of S&P 500 to XLP ETF

The XLP ETF has largely lagged the broader S&P 500 and Dow Jones in recent months, in part due to the sector’s ties to growth expectations. With the lowered GDP forecasts and broader equity weakness, XLP has fallen under pressure. Of the 30 corporations listed on the Dow Jones, 5 of them fall under the “services” category and together they account for roughly 17% of the index’s market capitalization. Further, a series of earnings reports from Target, Kohl’s and Ross are due tomorrow. The reports will offer deeper insight on the sector and could detract from or exacerbate any price action moves based off of the ISM-services data.

Dow Jones Price Chart: 1 – Hour Time Frame (October 2018 – March 2019) (Chart 2)

Dow Jones price chart

With that said, Tuesday’s service sector data could prove to be a headline catalyst for the industry which in turn could influence price action in the Dow Jones and S&P 500. As for the Dow Jones specifically, the industrial average closed Monday considerably lower than it opened, down about 0.80% as market participants faced waning trade optimism and technical resistance.

Looking to take your trading to the next level? Check out our free Advanced Trading Guides.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more: Stock Market Fund Inflows Return as S&P 500 Hits Technical Resistance

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES