Stock market today: S&P 500 in fifth straight record close as earnings shine
All three Europeans saw the advised dollar supports hold to provide it with a lift back to their hourly price equilibrium resistance… and also break. It’s a positive sign though there are still the 4-hour price equilibrium levels to be challenged but should be broken. Once that is confirmed it should generate greater upward momentum to take it back to its recent highs. Then it should be just a matter of time before it extends to the next higher projection levels.
However, we still need to take this step by step today as the 4-hour price equilibrium areas are quite capable of causing some short term reactions. If I am to pick out just one of the three that appears to have more potential it is GBP/USD that lagged a little yesterday and seems to potentially be on the brink of a much stronger drop compared to EUR/USD. Certainly it does look like it needs to play catch-up to a certain extent.
The outlook for a stronger dollar is, perhaps ironically, highlighted in USD/JPY. The break above 78.40 produced the extension precisely to the bottom of the resistance zone and retracement area. While I could make an argument for one more high I feel the stronger risk is now bearish again with EUR/JPY also appearing to have completed its correction and thus implying resumption of losses. The cross still has some way to go on the downside and the loose correlation seen over the past few months of bearish
Add to that AUD/USD and we have a full complement of indications all pointing to the same conclusion… and that may well cause the U.S. indices to topple over also, either directly or in the not too distant future.
Thus, today focus on the dollar upside, take care at initial resistance areas but overall the story remains a dollar bullish one…
However, we still need to take this step by step today as the 4-hour price equilibrium areas are quite capable of causing some short term reactions. If I am to pick out just one of the three that appears to have more potential it is GBP/USD that lagged a little yesterday and seems to potentially be on the brink of a much stronger drop compared to EUR/USD. Certainly it does look like it needs to play catch-up to a certain extent.
The outlook for a stronger dollar is, perhaps ironically, highlighted in USD/JPY. The break above 78.40 produced the extension precisely to the bottom of the resistance zone and retracement area. While I could make an argument for one more high I feel the stronger risk is now bearish again with EUR/JPY also appearing to have completed its correction and thus implying resumption of losses. The cross still has some way to go on the downside and the loose correlation seen over the past few months of bearish
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.
EUR/USD and USD/JPY still seems very much appropriate.Add to that AUD/USD and we have a full complement of indications all pointing to the same conclusion… and that may well cause the U.S. indices to topple over also, either directly or in the not too distant future.
Thus, today focus on the dollar upside, take care at initial resistance areas but overall the story remains a dollar bullish one…
Which stock should you buy in your very next trade?
With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.
In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.
With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.