2022/07/21 (054) Technical Analysis

The Price Zone More Or Less Around 30.000 Points
Was Successfully Defended By The Bulls During The Last Week…
It Remains A Relentless Price Battle This Week – With An Uncertain Outcome!

At the US WallStreet, the spotlight is this week on corporate earnings results and/or housing data. Elsewhere, the ECB, the Bank of Japan, and/or the People’s Bank of China will hold monetary policy meetings. While UK, Canada, and/or Japan release inflation figures for June. Also not to ignore are may be all flash manufacturing and services PMI figures for the US, for Germany, for France, for UK, and/or the Euro Area.

However, Let Us Get To the Point For This Week
– From A Short-Term Perspective, In The Form Of A Technical Analysis

Basically, for us bullish observers of the Dow futures, it is important to first defend the high (31,624) and/or the low (30,495) from last Friday. When US retail sales came in better than expected. And the Consumer Sentiment Index did not manifest a new historical low of below 50 points, as in May 2020. Although 51.1 points also suggest no reason to buy stocks on US WallStreet. Nevertheless, the high (31,624) and/or the low (30,495) must be defended. Since a trading range of over 1,000 points, of 1,129 points, to remain clear in detail, is extraordinary. So that we will have to wait and see whether a technical trend reversal chart formation will form at least in the short term for the coming trading days, this week and also next week.

Wall Street Rises For Third Day

Wall Street’s main indexes rose for the third consecutive session on Thursday, with the Dow adding over 150 points and the S&P 500 and Nasdaq climbing 1% and 1.4%, respectively, as better-than-expected corporate earnings offset worries about an economic downturn. Tesla rose nearly 10% following the electric-car maker’s upbeat earnings on Wednesday, pushing other high-growth stocks deep into the green. Alcoa and CSX also reported results that beat Wall Street expectations. On the flip side, American Airlines dropped more than 7% after cutting back on growth plans, while United Airlines plunged over 10% after disappointing earnings results. In other corporate news, Carnival’s stock fell by more than 10% following the cruise line’s announcement that it would sell an extra $1 billion worth of stock. Elsewhere, the ECB surprised markets with a larger-than-expected 50 bps hike, ending eight years of negative rates, while revealing a new bond-buying program to tame borrowing costs.

Government Bond Yields Fall As Recession Fears Grow

The yield on the US Treasury 10-year note slipped below the 2.9% mark as investors rushed to safe-haven assets amid lingering fears that an aggressive tightening worldwide to tame sky-high inflation will eventually tip economies into a recession. The ECB surprised markets with a larger-than-expected 50 bps hike on Thursday, ending eight years of negative rates, while revealing a new bond-buying program to tame borrowing costs for the eurozone’s most indebted countries. Meanwhile, the Federal Reserve, the world’s most influential central bank, has already raised benchmark short-term borrowing rates by 1.5 percentage points this year, with another 75 bps hike in July regarded as inevitable. While such an aggressive tightening should be the key to bringing down inflation, currently running at over40-year highs in the US, investors have grown concerned that it will also tip the world’s largest economy into a recession.

Dollar Erases Gains After ECB

The dollar index reversed most gains to 107 on Thursday, after the ECB delivered a 50bps increase in interest rates, twice a 25bps rate hike signalled in the previous meeting. The euro soared almost 1% after the ECB’s big hike, thus pressuring the greenback. Still, the US dollar is set to hold strong as risk sentiment remains fragile around the world, with the energy crisis in Europe and Italy’s political turmoil pressuring the common currency. More importantly, the Fed is set to continue its tightening plans and is expected to deliver a 75bps rate hike next week, a fourth straight increase, totalling 225bps so far.

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

32007 07/21/2022 today`s close (last trading price)

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
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

For All Our Love Of Technical Analysis,
Don`t Underestimate Fundamental New Numbers From The US Economy
– And/Or Much More The Reaction Of The FED, In Form Of Interest Rate Hikes

Regardless of the current technical picture, new data from the US economy must also be taken into account. Because the FED cannot avoid a hawkish monetary policy in order to suppress US inflation. And that even if you are not held responsible if we continue to argue competently. Since Sleepy Joe Biden, since he has been in charge of the White House Office, has reversed the policies of his predecessor Donald J. Trump. That the US consumers are now paying for. And also the FED, with above-average interest rate