The US major indices – led by the Nasdaq – got off to a weak start today. The RBNZ hiked by 50 and did not follow the RBA lead. The dollar moved higher. Interest rates moved higher as well.
The US yields remain up on the day. The USD is still higher on the day, but the stocks have erased all their gains and trades in positive territory.
For the Nasdaq that means it erased a decline of -2.38%. Pretty impressive.
Lookin at the 5 minute chart of the Nasdaq, although the move was fairly large, the price decline did not reach the midpoint of the move up from last Friday’s low. In addition, the index also bounced nicely off the 200 bar MA on the 5 minute chart. Thats good news for the buyers.
Taking a broader look at the hourly chart below, the price is also back above its 100 hour MA at 11059.43. That is also good news for the buyers.
EURUSD is back above its 100 hour MA
Finally, if you were to look at the weekly chart the price is back above the 200 week MA at 11132 today (see video here outlining the importance of that area here). That too is good news for buyers in the short term at least. .
Nasdaq is back above its 200 week MA
The employment numbers will still need to be released on Friday. Needless to say that data point will need to show some modest weakness in jobs. That would be the best case scenario for higher stock prices as yields can moderate, and some of the tightening fear can come Out. If the number is stronger than expectations, That would hurt the the prospects for more upside continuation.
