Joe Perry October 25, 2019 1:24 PM
In what was thought to be a slow Friday as we wait for the plethora of data, earnings, and FOMC meeting next week, stock Indices are trading at or near all time highs today as the USTR said they are close to finalizing some sections of the trade deal. Conversations are continuing and will be ongoing. Afterwards, President Trump also stated that China will be buying more agriculture products and that they want a deal “Very badly”. The S&P500 cash index made all time highs today and the futures are right behind, with today’s high just 3 handles off the all-time highs. First target for SPX 500 (cash index) is 3067, which is the 127.2% extension from the September 19th highs to the October 3rd lows. First support comes across at Wednesday’s highs near 3010.
Source: Tradingview, FOREX.com
The DXY is also rebounding from last week’s wicked selloff towards horizontal resistance at 97.88 and the 38.2% retracement from the October 1st highs to the October 18th lows at 98.12. Support comes in on the day at 97.50.
Source: Tradingview, FOREX.com
As a result, Gold futures are near unchanged on the day at 1505. The precious metal was trying to break out of a bullish pattern (either a descending wedge or flag) and was up as much as $14.50 before pulling back to unchanged. If gold were to close below 1505, the daily candlestick would be a shooting star or inverted hammer, both of which have reversal implications.
Source: Tradingview, FOREX.com, COMEX
The expectations are now set that “something” will be done regarding Phase One of the US-China trade war. Watch for more headlines over the weekend and early next week. In addition, keep in mind the looming announcement of a Brexit extension, as well as economic data, including NFP on Friday, more earnings, and the FOMC meeting on Wednesday. We may see some volatility next week!
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.