US benchmarks back near record highs

5:05 PM January 7, 2020

Summary:

  • US500 trading not far from all-time high

  • Markets attempt to shrug off Middle East concerns

  • ISM release (3PM) could be key going forward

 

Monday’s trade for US indices was similar to Friday’s in some ways with indices trading firmly lower during the European morning before bouncing during the cash hours. The positive reaction yesterday was more impressive than that on Friday as a red open was keenly bought and the US500 ended the day with a sizable green candle on D1. Earlier today the market even came within 10 points of its all-time high at 3263, although the market has turned lower in the past hour or so.

The US500 once more found support around the 21 EMA (yellow line) and ended Monday’s session back above the 8 EMA (blue line). The uptrend remains in tact for now as long as the recent lows of 3206 aren’t breached with the record peak of 3263 a level to be aware of above. Source: xStation

 

The reasons for the weakness in the past couple of sessions are well versed with concerns surrounding rising tensions in the Middle East causing some disconsternation for investors. However, with both Oil and Gold pulling back from their recent peaks the markets are seemingly attempting to look through the clear and obvious threat of further military conflict and for now that is keeping indices supported. This afternoon there’s the 2nd most important US data point of the week due out at 3PM (GMT), with the ISM non-manufacturing PMI called to rise to 54.5 after 53.9 prior. 

There’s some notable negative divergence on the RSI on a H4 timeframe which could be seen to suggest that the upwards momentum is on the wane. Source: xStation

 

The content of this report has been created by X-Trade Brokers Dom Maklerski S.A., with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. X-Trade Brokers Dom Maklerski S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.

Share:
Back