S AND P 500 & NAS100 PRICE FORECAST:
MOST READ: Greenback Index (DXY) Retreats Serving to USD/JPY Tick Decrease, 145.00 Incoming?
US Indices have shrugged off the chance of tone which kicked of buying and selling this week as for the second a minimum of market members seem relaxed that the battle in Israel will stay confined. Early on Monday markets appeared involved of the potential fallout from the battle which may maybe drag different Nations in as nicely,
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FED POLICYMAKERS GIVE DOVISH SIGNALS
Danger property have obtained a lift since yesterday’s US session as high Fed policymakers hinted that the upper long-term Yields are the decrease the chance that additional price hikes could be wanted. This rhetoric noticed the gaps on US futures shut and positive aspects continued into right this moment as Fed policymaker Bostic reiterated an identical dovish tone. Bostic said that the Fed don’t see the necessity to enhance charges anymore.
These feedback look like serving to sentiment in the intervening time and holding US equities supported.
US 2Y and 10Y Yield Chart
Supply: TradingView, Created by Zain Vawda
If the battle in Israel stays contained markets focus will shift to US PPI and CPI knowledge with an enormous beat prone to reignite chatter of tighter coverage and thus weigh on US equities. Friday we even have the financial institution earnings being launched.
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The Fed minutes out tomorrow may show a waste of time given the dovish narrative from policymakers already priced in.
RISK EVENTS FOR THE WEEK AHEAD
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S&P 500 TECHNICAL OUTLOOK
Kind a technical perspective, the S&P has bounced off a key space of assist earlier than the futures closed the hole and continued larger this morning. There are some headwinds simply up forward although as we’ve the 50 and 100-day MAs resting across the 4414 mark.
The 50 and 100-day MA are giving early alerts of a possible dying cross which might contradict the present rally to the upside in addition to the momentum. A break of the 4414 resistance space may see the SPX make a run towards the descending trendline at the moment in play .
S&P 500 October 10, 2023
Supply: TradingView, Chart Ready by Zain Vawda
NAS100 TECHNICAL OUTLOOK
The correlation with the Nasdaq of late has been fascinating to observe because it nearly identically resembles current value motion on the SPX. Having damaged above the 100-day MA (though a dying cross) did seem with the following key resistance space resting 15300.
A break larger right here may lead us nearer to the YTD excessive with resistance at 15600 and 16000 respectively.
NAS100 Each day Chart – October 10, 2023
Supply: TradingView, Chart Ready by Zain Vawda
IG CLIENT SENTIMENT
Taking a fast take a look at the IG Consumer Sentiment, Retail Merchants have shifted to a extra bullish stance with 51% of retail merchants now holding lengthy positions. Given the Contrarian View to Crowd Sentiment Adopted Right here at DailyFX, is that this an indication that the SPX might proceed to fall?
For a extra in-depth take a look at Consumer Sentiment on the SPX and easy methods to the very best use get your complimentary.
| Change in | Longs | Shorts | OI |
| Each day | -4% | 9% | 2% |
| Weekly | -10% | 15% | 1% |
Written by: Zain Vawda, Markets Author for DailyFX.com
Contact and observe Zain on Twitter: @zvawda
