FXCM's weekly Nasdaq CFD, NAS100 had three weeks of gains but now appears to be reacting to the 61.8% retracement of its last impulse move. Last week's candle is an inverse hammer. I.e. bulls took the price up to the high for the week before losing control to the bears and closing well off the high. This week's candle (not completed ) has bearish follow-through, following the hawkish comments by Brainard and Daly, which pushed bond yields up. Tomorrow, Bullard is due to speak, and if his remarks continue to push yields higher, NAS100 is likely to come under further pressure.
Technically, the 61.8% level is often targeted by market bears.I.e., the previous three-week rally may be a bear market rally, which can be very damaging to participants.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.