23 November 2016 (8:35 AM EST)
November 2016 is turning out to be a historical month in global markets, specifically so for U.S. markets.
Dow Jones crossed over 19,000, the Dollar index crossed over 101, Trump crash came, then Trump rally came and now the Fed’s rate hike jitters are sending Gold to pit, the Dollar index is speeding up and for the first time in almost two weeks, U.S. stock futures are turning negative after a healthy jump in Durable Goods Orders.
European markets had already been trading mixed. DAX (Germany) had been highly negative and now, it looks like we may see a negative or mixed session in U.S. markets too, as profit booking will quicken before the Thanksgiving holiday tomorrow.
Right now, U.S. stock futures are slightly mixed. Dow Jones futures are holding 2 points’ gain, but Nasdaq futures are down by 10 points and S&P 500 futures have also dropped in negative.
Commodities are seeing a steep decline, with Gold and Silver down by nearly-1.45% and Oil futures are also trading low. A drop in gold prices reflect markets’s belief about a rate hike from the Fed and it may put pressure on stocks.
Many more economic reports will be pouring in today and that could trigger higher volatility in all segments of financial markets. Good numbers will push the Dollar index higher and may turn stocks lower.
Other global markets will also be affected in their own way by rising dollar. If U.S. stocks trade lower today then we can expect a lower trend in global markets tomorrow.
Right now, it can be said that a volatile and range bound session in U.S. markets looks possible today. Yesterday’s trading range in major indexes will be the immediate range for today also. That means, previous high and previous low will mark today’s trading range and if any of these levels in breached, then the intra day trend will go in that direction.
On hourly charts, Dow Jones is showing an uptrend and as long as the trend line in hourly charts is intact, this trend will also remain in place.
Today’s closing levels may indicate if that uptrend will remain intact and Dow Jones and broader U.S. markets will turn range bound; or, whether we see a return of negative trading pattern in these markets.
Good luck, enjoy the session!