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18.11.2021: US stocks remain at about 1-year highs despite downtick (S&P500, DXY, USD/CAD, BTC/USD)

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The major US stock indices are trading a bit lower, though they remain not far away from one-year highs. Nevertheless, investors are betting on a further bullish wave. What are the arguments in favor of the uptrend? Let’s discuss it in the video! Watch it till the end and make sure you subscribe to our channel!
One of the reasons for a minor decline on Wall Street is an uptick in the number of the US initial unemployment claims, though analysts expected a decrease last week. Nevertheless, experts are confident about a full recovery in the US labor market because the manufacturing PMI released earlier logged notable improvement.
The actual indicator was better than expected in October following contraction in September. Besides, the capacity utilization index also increased. Thus, evidence that the US industry is gaining momentum arouses optimism among stock investors. Hence, there is a fair chance that US stocks will be able to update new record highs in the near future.
Meanwhile, the S&P 500 is trading steadily at near 4,688. Futures on the S&P 500 are expected to trade in the corridor between 4,660 and 4,700. In other words, the downward correction is not over yet.
Soaring inflation in the US is putting investors on edge. They are voicing concerns about US political and economic institutions. For example, Joe Biden requested the Federal Trade Commission to "immediately" investigate whether illegal activity by oil and gas companies is pushing up gas prices in the domestic market. So, the President is determined to stem alarming inflation. The US dollar has halted its rally, awaiting the US Fed’s response to high inflation. However, yesterday’s advance allows the US currency to consolidate at the strongest levels of the year. Today its index is trading at near 95.70. It is likely to find balance in the corridor between 95.60 and 96.70.
The USD/CAD pair has not been able to reverse upwards and reach new highs. Yesterday, the currency pair extended its slide due to a slump of oil prices. Today, the oil market moderated its decline. Still, the USD/CAD pair is poised to trade lower, now holding at 1.2595. It is expected to stick to the lower border of the corridor between 1.2570 and 1.2600.
Bitcoin is still trading without a clear-cut trend. Interestingly, the price of the flagship cryptocurrency has jumped since June amid its worldwide recognition and the recent launch of the first Bitcoin ETF in the US. A few days ago, the crypto sharply dropped to 59,670 dollars where it has been trading since then. This is a dangerous threshold. If the price falls below 57,000 dollars, a deep correction is likely to follow. Bitcoin has to grow above 63,000 to trigger a new bullish wave.
One of our viewers left a comment that Bitcoin is weighed down by broad-based strength of the US dollar. In fact, this is not the case. There is no direct connection between the US dollar and Bitcoin. The underlying reasons behind Bitcoin’s downtrend are profit taking by crypto investors and China’s remarks. Beijing stated that crypto mining is an extremely harmful practice for the environment and called on other countries to raise electricity tariffs for their mining firms.
To sum up, the US stock market is on the path to new historic peaks. On the other hand, the market is running a risk to tumble from such elevated levels. So, it is equally unreasonable to buy and sell stocks right now. Let’s see how the key indices will close this trading week. Trade at a profit with InstaForex! See you tomorrow! Don’t forget to leave your comments!

00:00 Situation on the US market
00:27 Initial Unemployment Claims
01:23 S & P500
01:45 DXY
02:40 USD / CAD
03:10 Bitcoin
03:51 Crypto Market
04:31 Results

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