I’m Brad Alexander and in today’s Market Blast, let’s look at WTI (USOil), Gold (XAUUSD), EURUSD, the S&P500 (US500), and the NASDAQ (US100).
Last week’s US CPI numbers were lower than expected which is good news for the US Federal Reserve which needs to get inflation under control.
With lower inflation, there is a possibility that the Fed will lower interest rates and corporations, big and small, like this and investors buy shares driving prices higher.
We recently published a video on the 200-Day Simple Moving Average and we can see that the NASDAQ, S&P500, and the DJIA are in bull markets well above.
Also, price action on the Russell2000 and the S&P400 have just touched the 200-day Moving Average.
All the stochastic oscillators on US Indices are overbought but if we look at the 4-hour chart on the NASDAQ, we see the opposite so we may have an opportunity to “Buy the Dip” but wait for confirmation before buying.
The idea that the Fed might lower Interest Rates had the market selling USD and price action was volatile.
You will recall from Monday’s Market Blast video that we spotted this symmetrical pennant on EURUSD and thought it looked like a bullish continuation pattern.
Well, look what happened!
We also spotted price action on Gold at this level of support at the 38.2% Fibonacci level.
The weaker USD has sent Gold back to the 23.6% level and we see the stochastic oscillator turning up from oversold and MACD just peeping up into bullish territory.
This is not conclusive confirmation so be careful.
Also, on Monday we talked about lower demand for crude oil pushing prices down on Brent and WTI.
Here we see price action bouncing off the upper trend line, the stochastic oscillator has crossed mid-way, and MACD looks very bearish.
The next key level below is at $74 per barrel.