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. See our updated Privacy Policy here.

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
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/eF0XS79LgK
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/gaYbbaTnpb
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/H19vRDCpUJ https://t.co/HCvzbjEkr6
  • Get our analysts’ view on the key fundamentals for indices in Q2. Download now. https://t.co/Etdyanp76f https://t.co/n2wxfyMsJt
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/DWm7cBMUg9 https://t.co/5KaUvfGM4I
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/9Bjkh5413e
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/FqAsp91Gia
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/cKOUmtj7Dj
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/TnL91f7sl7
  • Human error in the forex market is common and often leads to familiar trading mistakes. These trading mistakes crop up particularly with novice traders on a regular basis. Learn about the top ten trading mistakes and how you can avoid them here: https://t.co/i8E2AXtzF3 https://t.co/cDcjl3Ue09
Dow Jones and S&P 500, Consolidate or Roll Over?

Dow Jones and S&P 500, Consolidate or Roll Over?

Paul Robinson, Strategist

Dow Jones/S&P 500/Nasdaq 100 Outlook:

  • Dow Jones consolidating (still has H&S potential)
  • S&P 500 also acting constructively
  • Nasdaq 100 – bonus macro-tech chart

See how the quarterly forecast has played out so far and what it could mean in the big picture – Q2 Equity Markets Forecast.

Dow Jones consolidating (still has H&S potential)

The Dow Jones sprinted from the monthly low, and with the past few sessions so far representing sideways price action at some point it may gear up for another move higher. It’s not yet a sturdy consolidation but working towards it, perhaps sometime next week.

The Dow may continue to try and use the mid-May swing high in the vicinity of 29957/877 as support. A few days above there could provide the launch pad necessary for a rise back to the April high or better up to the record high just under the 27k-mark.

In the event sellers show up in earnest, there is still room for a head-and-shoulders pattern to come to form. But the market will need to turn down very soon to keep symmetry of the pattern looking neat. I will revisit this scenario at a later time should the Dow start rolling lower towards the neckline and become a relevant scenario…

Check out the IG Client Sentiment page to see how retail traders are positioned and what it could potentially mean for various currencies and markets moving forward.

Dow Jones Daily Chart (Consolidating so far…H&S still on the table)

Dow Jones and S&P 500, Consolidate or Roll Over?

S&P 500 also acting constructively

The S&P 500 moving sideways could soon see a rally develop to the previous record high recorded in April. It’s not a bold call by any stretch of the imagination and with a little more time to build a base it becomes an increasing likelihood that we see the old record or better. Good short-term levels are difficult to find with the market in an extended position and limited movement in recent sessions. On hold for now…

S&P 500 Daily Chart (More consolidation could do good)

Dow Jones and S&P 500, Consolidate or Roll Over?

Nasdaq 100 – bonus macro-tech chart

This a macro-tech viewpoint. The Nasdaq 100 pulled off from a third push to a high which has in play a broad Reverse Symmetrical Triangle (RST). These are marked by increasingly larger swings (higher highs and lower lows) which demonstrate growing uncertainty. They are often thought of as topping patterns, but can lead to continuations in the direction of the broader trend as well.

So far, the bounce out of the first pullback from the high has been strong and suggest higher prices. We’ll find out soon, a breakout of the prior record of 7851 may spark an acceleration. To the contrary, this point in time is very crucial for the downside as well. If the current bounce rolls over and takes out last week’s low at 6936, it would be a strong indication that the pattern will lead to a swift sell-off.

Either way a big move may soon be in store as a resolution of the pattern could be nearing…

Nasdaq 100 Weekly Chart ('RST' pattern at critical point in time)

Dow Jones and S&P 500, Consolidate or Roll Over?

To learn more about U.S. indices, check out “The Difference between Dow, Nasdaq, and S&P 500: Major Facts & Opportunities.” You can join me every Wednesday at 10 GMT for live analysis on equity indices and commodities, and for the remaining roster of live events, check out the webinar calendar.

Tools for Forex & CFD Traders

Whether you are a beginning or experienced trader, DailyFX has several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

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

DISCLOSURES