2022/12/01 (122) Technical Analysis – CBOT_MINI-YM1!

.There Are 34000 Points To Defend In The DJI
– And Not Only This Week, But Rather Throughout December


Dollar Index Hits 15-Week Low Of 105.32 On Today`s Trading Session – On Thursday

The dollar index held below 106 on Thursday, the lowest in four months, after a sharp fall in the previous session, after Federal Reserve Chair Jerome Powell signaled a slower pace of tightening ahead. Powell said that “slowing down at this point is a good way to balance risks,” and that the Fed could moderate the size of rate hikes as soon as December. Market pricing indicated that the Fed funds rate will peak below 5% in May 2023 following Powell’s comments, lower than previous expectations for a peak above 5% in June. Still, Powell warned that controlling inflation “will require holding policy at a restrictive level for some time.” Investors now look ahead to more US data to gauge the health of the world’s largest economy, highlighted by a key monthly jobs report on Friday.

Dow Jones Closes Lower Today – Salesforce Dampens Sentiment

The market-wide S&P 500 was down 0.21 percent on Thursday at 4071 points. The tech-heavy Nasdaq 100 was flat at 12,030 points. The interest-sensitive stock market barometer had jumped 4.6 percent the day before. According to Fed Chair Jerome Powell, the time for more moderate rate hikes could have come as early as December. That had triggered a rally for high-growth tech stocks.

After the price rally in the middle of the week, disillusionment returned to the US stock markets on Thursday. The leading index Dow Jones Industrial fell by 0.75 percent to 34,331 points, but limited higher losses again somewhat. A bleak business outlook for the software provider Salesforce put a damper on the mood. The day before, the prospect of a less drastic rate hike by the US Federal Reserve in December had pushed the Dow to its highest level since April. However, investors reacted angrily to the business outlook of the cloud software specialist Salesforce. Its shares collapsed by almost ten percent as by far the biggest loser in the Dow. Market participants took the new forecasts as evidence that companies are slowing down in investments in technology in an uncertain economic environment. The departure of co-boss Bret Taylor caused additional difficulties. At the top of the Nasdaq 100, Okta’s stock soared nearly a quarter. The developer of Internet software is expecting a significantly lower loss in the coming year than it had originally announced. The shares of the software provider Snowflake rose by six percent. In pre-market trading, the company’s weak outlook had weighed on the price. Analysts at major investment banks suchas JPMorgan and Morgan Stanley nonetheless remain optimistic about Snowflake’s growth prospects. A profit warning from department store chain Dollar General caused the share price to drop by more than eight percent. Customers increasingly prefer products that are less profitable for the company, and supply chains impose additional costs. In the wake of Dollar General, shares in the retailer Dollar Tree fell by a good 1 percent.

Fed Chair Powell Triggers Bullish Price Action Rally Today

US Federal Reserve Chairman Jerome Powell gave US stocks a strong tailwind on Wednesday. The leading index Dow Jones Industrial rose by 2.18 percent to 34,589.77 points and reached its highest level in a good seven months. Among other things, Powell had suggested that December could be the time for more moderate rate hikes. The Fed had previously raised interest rates sharply by 0.75 percentage points. Shortly before Powell’s statement, the Dow was still in the red. Prices on the technology-heavy Nasdaq stock exchange rose even more sharply. The growth stocks listed there are considered to be particularly interest-dependent. Should interest rates rise less sharply, the chances of higher valuations for tech stocks on the Nasdaq increase. The Nasdaq 100 gained 4.58 percent to 12,030.06 points. But also in the Dow, three tech giants, Apple, Microsoft and Salesforce, were the biggest price beneficiaries. The market-wide S&P 500 increased by 3.09 percent to 4080.11 points.

“The time for a reduction in rate hikes could come as early as the December meeting,” said Fed Chairman Powell in Washington. Inflation, the main reason for interest rate hikes, had already weakened somewhat in recent months. Analyst Pablo Villanueva of UBS noted that Powell softened the wording on the interest rate peak, the expected peak in interest rates. With the gains of this Wednesday, the Dow has a respectable stock exchange month November behind it: The index went up by almost six percent – following an even stronger October. The Nasdaq 100 climbed similarly to the Dow in November. Boeing shares rose 2 percent. According to insiders, the aircraft manufacturer can hope for a compromise with the legislator when it comes to the endangered approval of two versions of the 737 Max jet. According to quarterly figures from Workday, shares jumped 12.6 percent. The provider of cloud-based accounting and human resources software has become a little more optimistic and has also announced a new share buyback program. On the other hand, the shares of Crowdstrikewere penalized with minus almost 20 percent. The cyber security specialist disappointed with the sales target for the current quarter.

US Stocks Lack Direction, NFP Eyed

US stocks lack direction on the first trading day of December, following a big rally the day before after Fed Chair signalled a slowdown in interest rate increases, while fresh economic data sparked worries of a recession. The ISM Manufacturing PMI showed factory activity shrank for the first time since the pandemic-induced blow. At the same time, consumer spending proved resilient once again in October and PCE inflation slowed more than expected. Traders now await the jobs report due tomorrow for an update on the labour market. The Dow Jones pared some losses to close 195 points lower at 34395, after falling 460 points early in the session. Shares of Salesforce were down more than 8% after the company said its co-CEO would be stepping down soon. The S&P 500 ended little changed at 4077 while the Nasdaq gained 0.1% to 11482.