The more bullish upgrade by BofA on Apple shares is the only relevant headline that I can allude to in helping to push US futures higher in the past hour. S&P 500 futures are now up 0.3% with Nasdaq futures up 0.7%, while Dow futures are flat. So, that sort of gives you an idea of where the gains are coming from.

Apple shares are up nearly 2% in pre-market trading and that seems to be lighting up the tech space and equities sentiment ahead of US trading later. That being said, just be wary that action in the bond market could still make things a little messier later in the day.

This article was written by Justin Low at www.forexlive.com.

Yesterday, the Dow Jones remained under pressure as
the market continued to reprice the aggressive rate cuts expectations following
Fed’s Waller
comments. Moreover, the economic data surprised once again to the upside with
the US Retail Sales beating
expectations across the board and Industrial Production edging
up. Overall, the soft-landing narrative is still intact but in the short term
the market is readjusting to tighter monetary conditions.

Dow Jones Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the Dow Jones fell
below the red 21 moving average as the
bearish momentum continues to weigh on the market. We can also see that the
recent upside price action has been diverging with the
MACD which is
generally a sign of weakening momentum often followed by pullbacks or
reversals. In this case, the target for the pullback should be the 37066 level,
while a break below it would confirm a reversal.

Dow Jones Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see more
clearly the divergence with the MACD and the recent pullback from the all-time
high. The buyers should step in around the 37066 level with a defined risk
below it to position for another rally into a new all-time high. The sellers,
on the other hand, will want to see the price breaking lower to increase the
bearish bets into the 36030 level.

Dow Jones Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see that we
have a resistance zone
around the 37400 level where we can also find the red 21 moving average for confluence. If
the price were to pull back into that resistance, we can expect the sellers to
step in to position for a drop into the 37066 level and target a break below
it. The buyers, on the other hand, will want to see the price breaking higher
to invalidate the bearish setup and increase the bullish bets into a new
all-time high.

Upcoming Events

Today, we will see the latest US Jobless Claims
figures, while tomorrow we conclude the week with the University of Michigan
Consumer Sentiment survey.

This article was written by FL Contributors at www.forexlive.com.

A rebound in Chinese stocks and a slight softness in the dollar is helping to keep AUD/USD higher so far today, even with a rather poor Australian jobs report earlier here. The currency pair is up 0.3% to 0.6565, also assisted by a technical bounce off its December low:

However, the pair is now caught in a bit of a technical box in between its 100-day (red line) and 200-day (blue line) moving averages. The former is at 0.6513 with the latter at 0.6580 and that provides two key lines in the sand for buyers and sellers to work with respectively.

To continue the downside momentum, sellers will have to chase a break below the December low of 0.6525 and then the 100-day moving average at 0.6513. Meanwhile, to reverse the momentum, buyers will have to push for a break back above the 200-day moving average at 0.6580 currently.

So, that offers up a range for the pair to do some pushing and pulling before figuring out what the next move is.

The near-term chart dictates that sellers are still in control but the daily chart as seen above, looks to be taking precedent on price action importance. The aussie might be looking steadier so far today on the factors mentioned but it is now up to buyers and sellers to prove their mettle in the technical battle above.

This article was written by Justin Low at www.forexlive.com.

The dollar is trading a little mixed but not much changed overall, after being slightly lower earlier in the day. EUR/USD moved up to 1.0905 before keeping flattish around 1.0888 now while USD/JPY fell to a low of 147.65 before recovering to 147.91 at the moment. In my view, the lack of impetus has much to do with some indecision in the bond market for now:

10-year yields in the US broke above 4.10% after the retail sales data yesterday but there has been a lack of follow through after. Yields are down 2.5 bps today to 4.079% and more importantly, nudging back below the 200-day moving average (blue line) of 4.084%. I would say that is sort of keeping broader markets on edge in trading today.

Major currencies are not really doing a whole lot across the board while equities are also looking fairly tentative for the time being. European stocks are slightly higher but it comes after the heavy losses from earlier this week, while S&P 500 futures are up just 0.1%. So, that is not really helping to give traders much to work with.

Coming up later, we will have the US weekly jobless claims and Philly Fed manufacturing index. Those are minor releases but could offer an excuse for traders to act upon. Otherwise, the lack of any inspiration as seen so far today is not really providing traders with much conviction.

The bond market especially is the one to watch as traders are watching to see if yields will keep the break of the key technical level above or if yesterday’s reaction will be faded. That is sort of where we are at now.

This article was written by Justin Low at www.forexlive.com.

Yesterday, the S&P 500 remained under pressure
as the market continued to reprice the aggressive rate cuts expectations
following Fed’s Waller
comments. Moreover, the economic data surprised once again to the upside with
the US Retail Sales beating
expectations across the board and Industrial Production edging
up. Overall, the soft-landing narrative is still intact but in the short term
the market is readjusting to tighter monetary conditions.

S&P 500 Technical
Analysis – Daily Timeframe

On the daily chart, we can see that the S&P 500
fell again below the red 21 moving average as the
bearish pressure remains strong. From a risk management perspective, the buyers
will have a better risk to reward setup around the support at 4700.
If the price breaks right through it, the sellers will increase the bearish
bets into the 4547 level.

S&P 500 Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can see that the
price was diverging with
the MACD right
at the all-time high. This is generally a sign of weakening momentum often
followed by pullbacks or reversals. The target for the pullback should be right
around the support zone at the 4700 level where we can also find the 38.2% Fibonacci
retracement level for confluence. This
is where the buyers should step in with a defined risk below the zone and
target a new all-time high.

S&P 500 Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can see more
closely the current price action and we can see that we have a minor trendline
defining the current bearish momentum. The sellers should lean around the
trendline to position for a break below the support and target the 4547 level.
The buyers, on the other hand, will want to see the price breaking higher to
invalidate the bearish setup and increase the bullish bets into a new all-time
high.

Upcoming Events

Today, we will see the latest US Jobless Claims
figures, while tomorrow we conclude the week with the University of Michigan
Consumer Sentiment survey.

This article was written by FL Contributors at www.forexlive.com.