Wall Street lacks conviction but closes in the green, down for the week

Global markets traded with an upbeat tone into the weekend with North American equities recovering a portion of their recent selloff. US stocks staged  |  16/08/2019 22:02
  • Dow Jones Industrial Average, DJIA, was adding 306.62 points, or 1.2%, to 25,886.01.
  • S&P 500 index put on 41.08 points, or 1.44%, to 2,888.68.
  • Nasdaq Composite index also rise, adding 129.38 points, or 1.67%, to 7,895.99.

Global markets traded with an upbeat tone into the weekend with North American equities recovering a portion of their recent selloff. US stocks staged a recovery on Friday with the Dow Jones Industrial Average ended higher by around 300 points and rose for a second day following a yo-yo week with risk-on and risk-off flipping from one day to the next, with the biggest drop for the year coming on Wednesday.

The Dow Jones Industrial Average, DJIA, was adding 306.62 points, or 1.2%, to 25,886.01, while the S&P 500 index put on 41.08 points, or 1.44%, to 2,888.68. The Nasdaq Composite index also rise, adding 129.38 points, or 1.67%, to 7,895.99.  Stocks were still ended down for the week in whipsaw 1% daily moves across the Dow and the S&P 500 index saw its 7th one-day 1% move for the month. 

Intermarket analysis

Looking across the markets, the front-end rates remained under pressure with the 2-Year UST-bill yields seeing modest gains to extend their rally to 16bps for the week while 5s/30s steepened by 6bps. Crude oil prices (+0.8%) saw modest gains as well, staying in toe with the US stock markets while gold prices drifted lower from recent highs. The Greenback was mixed but left the risk-off currencies weighed on JPY (-0.2%) and CHF (-0.2%). GBP (+0.5%) saw its largest one day rally in a month ahead of the Fed's Jackson Hole Symposium that will be the week's highlight.

DJIA levels

The DJIA recovered from the August lows having pierced below the 200-day moving average on three occasions this month to the downside. If bulls cannot claim back the 26000s with conviction, bears will target a run to the 50% mean reversion level of the late Dec 2018 swing lows and mid-July swing market highs, with the target located down in the 24500s.
 

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on FX
and other asset classes for Market Insight viewers

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com