01.12.2021: US stocks tumble again (S&P500, DXY, USD/CAD, BTC/USD)
Hi everyone! On Wednesday, the US stock market is again trading in the red, arousing fears among investors. Earlier, a lot of analysts viewed this decline as a temporary downward correction. Now it seems to be a downtrend. Having scrutinized the situation, we would like to share our forecasts.
Today market participants got to know the nonfarm employment change in November. The actual growth was higher than expected which is a positive sign. Robust hiring in the US sets the stage for a rapid recovery in the labor market.
Yesterday, a downward correction in the US stock market was followed by massive sell-offs on Wall Street. Nevertheless, despite the bearish wave, US stocks remain at elevated levels. Besides, the S&P 500 has not reached a 50-day moving average yet. Today the index dipped to 4,567. Thus, the index has to shed another 1% to fall to a 50-day moving average at 4,525. Today the S&P 500 could approach this level, moving towards the lower border of the corridor between 4,530 and 4,590 on condition that the market carries on with the bearish trajectory.
Meanwhile, the US dollar index is highly sensitive to metrics and even rumors about further inflation acceleration. Yesterday, the greenback slipped in light of comments by Fed’s Chairman Jerome Powell, though the drop was modest. Today its index is trading at exactly 96 points. Our experts assume it is likely to trade in the corridor between 95.60 and 96.20.
The USD/CAD pair is trading mainly higher. The currency pair has reached the medium-term highs. It is set to consolidate for a while to determine a further trajectory. For the time being, the USD/CAD pair is trading at near 1.2750. The expected corridor is between 1.2680 and 1.2780.
Nothing special is going on in the crypto market. Bitcoin has got stuck sideways in line with expectations. The price is hovering at around 58,000 dollars ahead of the important resistance of 59,000. The price has been rejected by this level for a few days straight. The same scenario is going to unfold today. Nevertheless, analysts are certain that the digital token will approach historic highs until the year end. So, the market needs a serious newsworthy event. Once it appears, we will tell you about it right away.
To sum up, the US stock market has gone through two heavy sell-offs in three trading days. Apparently, large market players have changed their sentiment. That’s why more and more speculators are willing to exit the equity market. Notably, the second bearish wave was not as sharp as the first one. The major stock indices updated Friday’s lows. Our experts say the odds are that the stock market is going to fix the bottom at the lows of Tuesday. A new bullish wave will follow afterwards.
00:00 Situation on the US market
00:24 US ADP Nonfarm Employment Change in November
00:41 S & P500
01:57 USD / CAD
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