Stocks sink on a global scale as the dollar strengthens due to conflicts on the Russian-Ukrainian border. Trae sanctions on Russia by the NATO allies is hurting economies around the world as another factor serves as a big red flag for indices.
Solidifying The Trend
Most indices are starting to show a more concrete direction to the downside as lower levels form and bounces from support are subtle. What we thought could have been a pullback initially is starting to form more of a trend on the S&P as well as in Britain, Germany and Japan.
Oil Supply Cutoff
Along with the sanctions in place, the US is having talks about cutting off Russian oil altogether to punish them for invading Ukraine. However, this move will have serious consequences on the stock market in the US because most of the oil production is outsourced from Russia and Iran. This has caused a choppier stock market as consumers will have to start spending more per gallon at the gas pump. And that triggers a domino effect of higher inflation of which is already at a 40-year high.
SPX takes another test around $4270s which suggests a potential break in support is more likely to happen. The big warning signal for indices is the recent break below support. A close below this level would probably take price to a lower low underneath the $4105 level. The 50 DMA's stark decline is quickly approaching the 200 and gearing for a potential death cross pattern on the 1D timeframe.
UK100
The British stock market is registering similar behavior as the index touched under a triple bottom before rebounding some losses on the day. The market's recent dip under the 200 DMA last Friday is a big technical red flag for England's investors who are now 12% off the highs. The harsh sell off on the 1D timeframe is not even reflected by the 50 or 200 DMAs yet over 7% lower from March 3rd levels.
DE40
The German market is the only index that turned positive today, up a little over 3% but still 23% from the highs. The index's break under the supportive trend line almost put stocks in a free fall for the past couple weeks. A death cross pattern did form which is Germany's big red flag going forward.
JPN225
Japanese stocks dropped to a falling trend line after making a lower low on the day. A death cross pattern on this chart is also acting as a bearish signal for the stock market in Japan. Risk-off behavior is not just in America, but all over the world at this point. Support lies around 24,160s which were the highs of February 2020.
A1 Edgefinder
AI- Generated Trading Setups
AI-generated bullish/bearish bias setups on forex currencies, gold, & indices.
Today's economic figures came out in US and Canada. GDP came in higher than expected in Canada while the price of goods purchased by consumers was lower than last month. Here are some pullback ideas for USD and CAD from GDP and PCE numbers. EdgeFinder Analysis NAS100 is a bullish reading on the EdgeFinder still. […]
This week has brought more inflation data with it regarding the USD's PCE and PMI numbers. Powell is also set to speak this Friday about monetary policy going forward. The RBNZ will also release their latest interest rate news tomorrow with expectations of an unchanged rate at 5.5%. EdgeFinder Analysis GBPUSD is a bullish bias […]
This week is a big PMI week for Europe, UK and US. Additional inflationary metrics will add to the overall sentiment of these countries' monetary policies going forward. Here are some setups for the coming week on these currencies. EdgeFinder Analysis GBPCAD is now a +7 on the EdgeFinder as we wait for CPI news […]
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.