|Day's range||6,585.31 - 6,710.41|
|52-week range||6,164.43 - 7,700.56|
Former Federal Reserve Chairman Alan Greenspan said that the U.S. economy is poised to slow down very soon. Former Fed Chair Janet Yellen expressed concerns over the high levels of corporate debt, saying that the issue is similar to what triggered the financial crisis.
NEW YORK, Dec. 14, 2018 -- Nasdaq (Nasdaq: NDAQ) today announced the results of the annual re-ranking of the NASDAQ-100 Index® (Nasdaq: NDX), which will become effective prior.
Based on the early price action, the direction of the December E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to the short-term Fibonacci level at 6664.00. Basically, look for an upside bias to develop on a sustained move over 6703.75 and for a downside bias to develop on a sustained move under 6664.00.
EU markets were flat and mixed in early trading, both before and after the release of the ECB’s policy statement. In the US futures trading indicated a flat open for the major indices.
Indices across Asia surged on signs of thawing trading tensions between the US and China. US markets were up an average 1.0% in early Wednesday pre-opening trading. In the UK new developments in the Brexit dealings have traders wary.
After the Fed, investors will have to deal with the strong possibility of a government shutdown. With Trump owning the shutdown, it is likely to happen. How long it will last will be the next worry. Remember that investors don’t like uncertainty, so this event is likely to fuel a volatile reaction in the U.S. stock markets.
Based on yesterday’s closing price reversal bottom and today’s confirmation, the direction of the December E-mini NASDAQ-100 Index is likely to be determined by trader reaction to 6714.50.
In the US, futures were indicated to open flat to slightly lower on Monday morning. In the EU mounting growth fears related to the US/China trade standoff have the indices moving lower at midday. Asia markets led the globe lower on Monday morning.
Although the headline number came in below the forecast, the economy did add more jobs in November. Furthermore, the unemployment rate remained near a record low. Most of all, average hourly earnings rose on a monthly basis albeit below the estimate, but it did move the annual rate higher. Therefore, we have to conclude that the Federal Open Market Committee (FOMC) has enough evidence to continue with its plan to raise its benchmark interest rate by 25 basis points at its December meeting.
The weaker than expected jobs data as represented by the Challenger Job Cuts report and the Weekly Unemployment Claims report, suggests a loss of momentum in the labor market. This places greater importance on Friday’s U.S. Non-Farm Payrolls report.
However, since early October investors buying government debt saw the direction of inflation differently. If you recall, inflation and economic expectations dictate the movement of long-term rates. Investors do this by estimating how much they should be compensated beyond inflation for holding government debt over several years.
Based on the current price at 6761.50, the direction of the December E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to the uptrending Gann angle at 6801.50.
Asian markets were down across the board as trade fears flare-up once again. In the US traders have an eye turned to the economic data as they look for signs of an economic slowdown.
Based on the earlier price action and the current price at 6713.00, the direction of the December E-mini NASDAQ-100 Index the rest of the session is likely to be determined by trader reaction to the short-term Fibonacci level at 6713.00.
Based on Tuesday’s close at 2803.25, the direction of the December E-mini NASDAQ-100 Index is likely to be determined by trader reaction to the 50% support cluster at 6822.75 to 6794.25.
Concerns over a possible economic slowdown exerted the most pressure on the markets. Stocks started to weaken on Monday after the yield on the three-year Treasury note surpassed its five-year counterpart. When short-term yields trade above long-term yields, or invert, a recession could follow, however, it is often years away after the signal triggers. Furthermore, it has to be confirmed by two-consecutive contractions in GDP. Basically, the “inversion” is saying that the economy is poised to weaken.
Short-term yields have been firming at a faster pace than longer-term yields throughout the year. They have been impacted the most by changes in Fed policy, which has been driven by Fed Chair Jerome Policy and his Federal Open Market Committee policymakers. The FOMC has increased rates three times in 2018 and stands ready to increase rates again for a fourth time in just a matter of weeks.
The US market was indicated down in early premarket trading on a number of concerns. The auto sector drug on EU indices as trade concerns resurface.
Investing.com - Ross Stores (NASDAQ:ROST) reported third quarter earnings that beat analysts' expectations on Tuesday and revenue that was inline with forecasts.
Based on the early price action, the direction of the December E-mini NASDAQ-100 Index is likely to be determined by trader reaction to a pair of 50% levels at 6822.75 and 6974.50.
In September, energy services including the electricity and utility (piped) gas service, had a relative importance of 3.4% to the US CPI-U (Consumer Price Index for All Urban Consumers), according to the Bureau of Labor Statistics. From 2003 to 2004, gas (piped) and electricity had a relative importance of 4.2% to the US CPI-U.
Based on the current price action, the direction of the December E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to the major 50% level at 6822.75. If there is a late session surge then 6974.50 becomes the best upside target.
Powell started his speech in Dallas by expressing confidence in U.S. economic strength, while saying markets will have to get used to the idea that the central bank could raise rates at any time starting in 2019.