A Bullish Whisper Amidst the Indices: Is a Reversal on the Horizon?

By Tomasz Wisniewski|

Published: October 05 2023, 06:57 GMT+0

A Bullish Whisper Amidst the Indices: Is a Reversal on the Horizon?

In the kaleidoscope of the trading world this Thursday, traders find themselves amid an unusually tranquil macro calendar, with the U.S. unemployment claims, anticipated to register at 211,000, holding the spotlight. Reflecting on yesterday’s revelations, the ADP non-farm employment change in the U.S. notably underwhelmed, clocking in at a mere 89,000 against the anticipated 150,000, scribing a narrative of cautious optimism in the employment landscape. While the ISM services PMIs from the U.S. aligned with forecasts, they could barely quench the thirst for more definitive economic cues.

Indicative of a possible pendulum swing, the indices carved out a semblance of bullish fervor yesterday, igniting dialogues surrounding potential bullish corrections or reversals. The lone candle, albeit an emblem of a potential upswing initiated by buyers, is yet to weave a tale robust enough to predict future trajectories with conviction. The NASDAQ, on one hand, seems to be sculpting a double-top formation, while the DAX seeks refuge back within the parameters of a falling wedge pattern, and the S&P 500 gingerly distances itself from the 38.2 Fibonacci.

The currency vista witnessed a subtle correction in the American dollar, rendering it one of the weaker currencies in the pack on this particular trading day. It is interesting to note that while the USD did not shed significant value, it languishes as the weakest currency, overshadowed by its Australian and New Zealand counterparts, which flexed their muscles as the strongest currencies in the array.

Shifting focus to commodities, oil demonstrated significant volatility, with one of the year’s steepest plummets materializing yesterday. Brent oil not only punctured its midterm uptrend line but also navigated below the $88 per barrel horizontal support, signaling a mid-term sell. Simultaneously, WTI oil shattered the lower confines of its channel-up formation and is in the throes of testing a crucial horizontal support pegged at $84 per barrel, imbuing the oil sentiment with a starkly negative hue.

Source: https://www.axiory.com/analytics/market-news/a-bullish-whisper-amidst-the-indices-is-a-reversal