Market Commentary
U.S. Market Overview:
On Tuesday, the major indices experienced choppy trading as investors brace for the latest inflation report, scheduled for release on Wednesday, December 11.
In terms of index performance, the S&P 500 sank -17.94 (-0.3%) to 6034.91, while the Nasdaq 100 declined -72.64 (-0.34%) to 21368.18 and the Dow Jones sank -154.1 (-0.35%) to 44247.83.
Meanwhile, across sectors, Communication Services, Consumer Staples and Consumer Discretionary were the only sectors in the green while the Real Estate, Technology and Materials sectors lagged behind.
U.S. Economic Developments:
The NFIB Business Optimism Index rose to 101.7 in November, surpassing expectations of an increase to 94.1 and up from October's 93.7. This marks the third consecutive monthly gain for the index.
Looking ahead to Wednesday, investors are focused on the latest CPI report. Year-over-year inflation is projected to rise to 2.7% in November, up from October's 2.6%, potentially marking a second straight month of increases.
U.S. Equity News:
Walgreens Boots Alliance (WBA) surged 17.74% after a Wall Street Journal report indicated that private equity firm Sycamore Partners is considering acquiring the pharmacy chain. The stock was the top performer in the S&P 500.
In contrast, Moderna (MRNA) tumbled 9.07%, becoming the S&P 500’s worst performer, after Bank of America Securities reinstated coverage with an "Underperform" rating and a price target of $41.
Oracle (ORCL) had a challenging session, declining 6.67% as its quarterly adjusted earnings per share fell short of analyst estimates.
Alphabet (GOOGL) gained 5.59% following news that Google and other investors are supporting clean energy developer Intersect Power in a funding round exceeding $800 million.
Kroger (KR) jumped 5.12% after a U.S. judge blocked its proposed $25 billion merger with Albertsons (ACI). While Kroger saw significant gains, Albertsons (ACI) dropped 2.27%.
Volatility & Commodities Snapshot:
Following today's trading action, the CBOE Volatility Index (VIX) tumbled -0.01 (-0.07%) to 14.18 and the 10-Year Yield increased 0.02 (0.52%) to 4.221%.
In the commodities market, Gold grew $55.4 (2.08%) to 2720.3 while Crude oil (WTI) rose $0.08 (0.12%) to 68.45.
Europe Market Overview:
At the European close, major indices across the region ended in negative territory. The DAX 40 edged down 16.8 points (-0.08%) to 20,329.16, the CAC 40 fell 85.36 points (-1.14%) to 7,394.78, and the FTSE 100 dropped 71.74 points (-0.86%) to 8,280.36.
On the economic front, Germany’s annual inflation rate for November was confirmed at 2.2%, up from 2.0% in October.
Foreign Exchange & Crypto Wrap:
The U.S. dollar index increased 0.24 (0.23%) to 106.395.
EUR/USD dropped 28pips (-0.27%) to 1.0524.
GBP/USD climbed 20pips (+0.16%) to 1.2769.
USD/JPY rose 75pips (+0.5%) to 151.94.
USD/CHF gained 44pips (+0.5%) to 0.883.
AUD/USD declined 59pips (-0.92%) to 0.6378.
USD/CAD increased 5pips (+0.04%) to 1.4176.
Wrapping up, in the crypto market, Bitcoin fell $-717.36 (-0.74%) to $96715 while Ethereum slid $-67.93 (-1.83%) to $3650.
After Hours
GameStop (GME) surged in after-hours trading after surprising investors with a third-quarter profit, defying expectations of a loss per share.
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AUD/USD intraday: rebound towards 0.6430
Our pivot point stands at 0.6361.
Our preference:
Rebound towards 0.6430.
Alternative scenario:
Below 0.6361, expect 0.6335 and 0.6320.
Comment:
The RSI is below its neutrality area at 50. The MACD is above its signal line and negative. The configuration is mixed. Moreover, the price is trading under both its 20 and 50 period moving average (respectively at 0.6383 and 0.6401).
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EUR/USD intraday: rebound
Our pivot point stands at 1.0503.
Our preference:
Rebound.
Alternative scenario:
Below 1.0503, expect 1.0474 and 1.0456.
Comment:
The RSI is above 50. The MACD is above its signal line and negative. The MACD must break above its zero level to call for further upside. Moreover, the price is trading above its 20 period moving average (1.0520) but under its 50 period moving average (1.0538).
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Gold Intraday: further advance.
Pivot:
2683.00
Our preference:
Long positions above 2683.00 with targets at 2698.00 & 2710.00 in extension.
Alternative scenario:
Below 2683.00 look for further downside with 2672.00 & 2661.00 as targets.
Comment:
The RSI is above its neutrality area at 50%.
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USD/JPY intraday: as long as 151.33 is support look for 153.02
Our pivot point stands at 151.33.
Our preference:
As long as 151.33 is support look for 153.02.
Alternative scenario:
The downside breakout of 151.33 would call for 150.70 and 150.33.
Comment:
The RSI is above 50. The MACD is below its signal line and positive. The pair could retrace. Moreover, the price is below its 20 period moving average (151.88) but above its 50 period moving average (151.54).
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GBP/USD intraday: the upside prevails as long as 1.2745 is support
Our pivot point stands at 1.2745.
Our preference:
The upside prevails as long as 1.2745 is support.
Alternative scenario:
The downside breakout of 1.2745 would call for 1.2712 and 1.2692.
Comment:
The RSI is above its neutrality area at 50. The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 1.2755 and 1.2751).
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EUR/JPY intraday: the upside prevails as long as 159.37 is support
Our pivot point is at 159.37.
Our preference:
The upside prevails as long as 159.37 is support.
Alternative scenario:
Below 159.37, expect 158.75 and 158.38.
Comment:
The RSI is above its neutrality area at 50. The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 159.78 and 159.69).
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EUR/GBP intraday: rebound towards 0.8276
0.8227 is our pivot point.
Our preference:
Rebound towards 0.8276.
Alternative scenario:
Below 0.8227, expect 0.8208 and 0.8196.
Comment:
The RSI is below its neutrality area at 50. The MACD is negative and above its signal line. The configuration is mixed. Moreover, the price stands below its 20 and 50 period moving average (respectively at 0.8247 and 0.8264).
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USD/CAD intraday: the downside prevails as long as 1.4200 is resistance
Our pivot point is at 1.4200.
Our preference:
The downside prevails as long as 1.4200 is resistance.
Alternative scenario:
The upside breakout of 1.4200, would call for 1.4240 and 1.4264.
Comment:
The RSI is below 50. The MACD is negative and below its signal line. The configuration is negative. Moreover, the price stands below its 20 and 50 period moving average (respectively at 1.4166 and 1.4172).
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