2022/07/14 (050) Technical Analysis

The Future Of The US Economy Has Never Looked Worse!
We may Have Had A Psychological Knock Out Of The Bears In June`22?
And That`s Why This Long Trading Capability In The DOW FUTURE Aims For…

Dollar Index Tops 109

The us dollar index jumped more than 1% to top 109 on Thursday, a fresh 20-year high, amid increasing bets the Fed will deliver a 100bps rate hike in the fed funds rate later this month, which would be the largest increase since the central bank started directly using overnight interest rates to conduct monetary policy in the early 1990s. Fresh data showed both consumer and producer inflation continued to accelerate in June, while the NFP report pointed to a tight labour market. The DXY is up more than 13% this year with the Euro hitting parity for the first time in 20 years and the japanese yen trading above 139 for the first time since 1998.

Libor Hits Highest Level Since 2019

The cost of borrowing dollars for three months skyrocketed more than 20bps to 2.74%, its sharpest increase since 2008, to levels not seen in more than three years as prospects of an aggressive tightening from the Federal Reserve and concerns about a global recession sparked demand for dollars. Meanwhile, the three-month Euribor interbank borrowing rate climbed above 0% for the first time since 2015 as money markets price an end to negative rates in the eurozone.

US Jobless Claims Rise To Highest Level In 8 Months

The number of Americans filing new claims for unemployment benefits increased by 9 thousand to 244 thousand the week that ended July 9th, the highest since November 2021 as more companies announce job cuts amid economic uncertainty. Figures compare to market expectations of 235 thousand. On a non-seasonally adjusted basis, initial claims rose by 21,384 from the previous week to 241,314, with notable increases seen in New York (+10,209), Kentucky (+3,091) and Indiana (+2,431). The 4-week moving average, which removes week-to-week volatility, was 235,750, an increase of 3,250 from the previous week’s unrevised average of 232,500.

Wall Street Extends Slide

US stocks declined on Thursday with the Dow shedding 400 points and S&P 500 and Nasdaq down 1% and 0.2% respectively as investors reassessed the outlook for tightening monetary policy while digesting a slew of disappointing earnings reports from big banks. Concerns about even faster interest rate increases intensified after data from the Labor Department showed US consumer prices rose at an annual pace of 9.1% in June, with money markets now pricing in on a 100 basis point rate hike in July. A different report also showed a bigger-than-expected increase in US producer prices, with significant pressure again coming from soaring gasoline prices. On top of that, the Fed’s Beige Book pointed to an impending recession amid soaring inflation. Adding to the gloomy outlook, JPMorgan Chase missed Wall Street expectations on earnings and revenue, sending shares of the bank down almost 4%. Shares of Morgan Stanley also came under pressure after the bank missed estimates. The Most Important Higher-Level Prizes

36832 01/05/2022 (a) previous all-time high
35752 02/22/2022 (b) 1st interim high after all-time high
35413 04/21/2022 1st interim new high above 200SMA after 3rd low above
35281 03/29/2022 (c) 2nd interim high after all-time high
33928 12/01/2021 (1) last low under 200SMA before all-time high
33434 05/31/2022 false break-out after reversal before lowest price
33031 01/24/2022 (2) 1st interim low after all-time high
32167 02/24/2022 (3) 2nd interim high after all-time high
31867 06/28/2022 1st interim new high after lowest price
31490 07/08/2022 2nd interim high after lowest price
31148 05/12/2022 1st another interim new low after (abc) (123) reversal

30604 07/14/2022 today`s close (last trading price)

30585 05/20/2022 2nd another interim new low after (abc) (123) reversal
29639 06/17/2022 lowest price so far after all-time high