US30 Pauses Losing Streak

  • US30
    (${instrument.percentChange}%)

US30 – H4

Wall Street has been having a bad spell recently and US30 runs its third straight losing week, in the face of aggressive tightening expectations from the Fed and surging treasury yields, ahead of next week's policy meeting.

Markets are pricing in lift-off in March and the conversation now seems to be shifting from the number of hikes to their size, with some - such as iconic investor bill Bill Ackman [1] – arguing for larger 50 bps increase.

Today sentiment improves and US30 rebounds, defending psychological level of 35,000 and Daily Ichimoku Cloud. This gives it the opportunity to push towards 35,600, but we are not sure yet about its ability to set weekly highs and take out its EMA200 (35,920-36,037).

Its five-day losing streak (even though Monday was shorter due to the MLK holiday) however, has put it in a tough spot and immediate bias is on the downside as long as it stays below the EMA200. US30 is in danger of breaking below 35,000, which will expose it to the 200Days EMA (34,691-10), although a fresh catalyst will be likely needed for a breach.

The earnings season has gotten underway in the United States and results have recently been supportive for Wall Street, but the first batch of reports has been somewhat of a mixed bag this time around.


Past Performance: Past Performance is not an indicator of future results.

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 25 May 2022 https://twitter.com/BillAckman/status/1482449528062193671

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