|Day's Range||1,555.80 - 1,575.50|
Based on the events over the weekend with the spreading of the coronavirus, we’re expecting to see a lower opening.
On the downside, the key angle to watch into the close comes in at 28788. The Dow stopped just about this angle earlier today.
With momentum to the downside, the first target is an uptrending Gann angle at 3269.00. This is followed by the short-term 50% level at 3259.25.
Stock markets initially tried to rally during the trading session on Friday, but as you can see on the S&P; chart, we have broken down to reach towards the 3300 level again.
The US dollar has done very little against the Japanese yen, as the market tried to rally a bit, but at this point it looks very sluggish and like it’s going to struggle to go anywhere significant in the short term.
The British pound broke above the highs of the previous session on Thursday, but then turned around to show signs of weakness. At this point, the market is likely to grind back and forth but I think the most important thing to pay attention to is that we have a lot of support underneath.
Gold markets initially fell during the week, but then turned around to break higher. Ultimately, this is a market that continues to grind sideways in this general vicinity, as it was the high that the market initially hit from the initial surge to the upside.
Based on the early price action and the current price at 1.1039, the direction of the EUR/USD is likely to be determined by trader reaction to the Fibonacci level at 1.1045.
Silver prices remain choppy, as the metal hovers just below the $18.00 level. We could see some movement later in the day, with the release of U.S. manufacturing and services PMIs at 13:30 GMT.
It’s turned bearish for the majors, with losses this week eating into last week’s gains. A Bitcoin move back through to $8,500 levels would signal support.
The S&P; 500 pulled back a bit during the trading session on Thursday, reaching towards the 3300 level. If we can break down below the 3300 level, then the market is very likely to go looking towards the 3250 level.
Natural gas markets have tried to rally again during the trading session on Thursday, but they continue to see signs of selling pressure every time we try to pick the market up off of the floor.
Based on the early price action and the current price at 29080, the direction of the March E-mini Dow Jones Industrial Average futures contract the rest of the session on Thursday is likely to be determined by trader reaction to the 50% level at 29050.