Daily Review for August 17, 2021
New record high for the S&P 500. Traders are aware in today’s U.S. retail sales data. Home Depot and Walmart report results.
Fed Chairman Jerome Powell will present his economic analysis. The market is aware for comments on tapering.
The market expects a GDP growth in the Euro Zone of at least 13.7% on an annual basis.
Gold keeps the upward channel, as geopolitical events and market fundamentals generate investors’ interest in hedging portfolios.
Futures remain in negative territory. European markets open in red.
| S&P500 -0.35% |
| The S&P 500 closed yesterday up 0.26%, reaching a new all-time high of 4,475 points. At this moment, the index started to correct 0.35% corresponding to investors’ profit taking. The index is trading at 4,459. Today, Home Depot and Walmart present their results. Both companies are part of the S&P500. We will also have today the FED Chairman Jerome Powell’s speech. Traders are aware on comments on tapering. |
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| Support 1: 4,465.0 Support 2: 4,463.8 Support 3: 4,461.6 Resistance 1: 4,468.4 Resistance 2: 4,470.6 Resistance 3: 4,471.8 Pivot Point: 4,467.2 |
| The index showed a significant rise up to the 4,475 level. Then the price started to decline towards the pivot point, so it could recover the uptrend. Trading range between 4,461 and 4,471. Pivot point at 4,467. RSI neutral. |
| DAX 30 -0.50% |
| The German index is currently down 0.50% and is trading at 15,860. Traders in Europe are aware on the GDP data for the Euro Zone. In annual terms, the market expects a result of at least 13.7% growth. Main assumption of the performance of the European economy, is the increase of the vaccination campaign, which allowed the opening of air and land borders. In this way, the reactivation and economic recovery has been visualized. In Europe, investors are also attentive to the FED statement. |
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| Support 1: 15,873.6 Support 2: 15,866.3 Support 3: 15,851.6 Resistance 1: 15,895.6 Resistance 2: 15,910.3 Resistance 3: 15,917.6 Pivot Point: 15,888.3 |
| The index is between support 1 and support 2. The price however remains above the 200-day moving average. Expected trading range between 15,851 and 15,917. Pivot point at 15,888. RSI neutral, approaching the oversold zone. If the GDP data surprises, possible rebound towards resistance 1 and 2. |
| GOLD +0.23% |
| Gold price continues to show upward movements as a result of the geopolitical and fundamental events that are taking place. Stock index futures remain in negative territory, so investors have opted to buy gold to hedge their portfolios. Gold is currently up 0.23% and is trading at USD$1,791 per Troy ounce. On the other hand, today FED announcement could define or correct the trend of the metal. If tapering begins, the price could reach over USD$1,800. |
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| Support 1: 1,789.19 Support 2: 1,785.27 Support 3: 1,782.84 Resistance 1: 1,795.54 Resistance 2: 1,797.97 Resistance 3: 1,801.89 Pivot Point: 1,791.62 |
| Gold continues the upward channel towards the level of USD$1,806. The price is above the 200-day moving average. Expected trading range between USD$1,782 and USD$1,801. Pivot point at USD$1,791. RSI in overbought zone. |
| NASDAQ 100 -0.23% |
| The market is aware to retail sales data in the United States. It is a demand indicator that measures spending behavior and consumer confidence, therefore it is a thermometer of the economy. The market is expecting a figure of 0.1%. At the moment the Nasdaq 100 is down 0.23% and is trading at 15,103. Traders are seeing retail sales, which could define the trend of the Nasdaq 100, as it contains companies such as Apple. |
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| Support 1: 15,107.6 Support 2: 15,103.7 Support 3: 15,096.8 Resistance 1: 15,118.4 Resistance 2: 15,125.3 Resistance 3: 15,129.2 Pivot Point: 15,114.5 |
| The index is descending from resistance 1. Expected trading range between 15,096 and 15,129. Pivot point at 15,114. RSI neutral. Possible move towards 15,024. Bears are looking to break 15,000 and take the price towards 14,962. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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