Market Insight & Commentary August 21, 2019

The Trading Daily Market Commentary features a summary of selected market segments as well as economic matters. Its content of interest is made available to all traders and investors at large

U.S. stock market ended lower, trimming a three-day strong rally that has come of hope of further monetary stimulus measures from Germany, China, and the United States central banks, along with a fresh reprieve from the fall in global bond market rates.

The significant stock averages accelerated to the downside running into the closing, ending the trading session at their worst price levels of the day. The Dow Jones slid 173 points or 0.7% to close 25,962, the broader S&P 500 index slumped 23 points or 0.8% to finish at 2,900, while the Nasdaq Composite declined 54 points or 0.7% to post a 7,949 closing., and small-cap Russel 2000 index posting 11 point loss or 0.72%

The U.S. Dollar succumbed some ground, and crude oil prices were somewhat mixed, while Gold and Silver ended higher. Earnings numbers from the retail sector ruled the equity news, as DJI index member Home Depot Inc. posted mixed second-quarter results, while Kohl's Corporation and TJX Companies, Inc. were disappointed with their quarterly earnings reports.

U.S. Treasury yields were weaker amid another dry economic calendar, and as market participators looked somewhat wary ahead of Friday's key speech from Fed Chairman Powell.

The yield rate on the two-year note was down 3bps to 1.50%, and the yields on the ten-year note and the thirty-year bond dropped 5bps to 1.55% and 2.03%, respectively.

Bond yields rates were once again under pressure following a current relative reprieve coming from a very sharp drop that has come amid United States-China trade skepticism, global economic growth concerns, and heightened geopolitical dilemma.

Everything looks to be right on schedule as we are showing on our chart analysis of theSPX. The scent of trouble is in the wind; you can see it that index is perfectly lining itself up for dandy rallThe S&P500 Market
(Click the Image to Enlarge)

Technical Analysis and Outlook

Everything looks to be right on schedule as we are showing on our chart analysis of the S&P 500 index above. The scent of trouble is in the wind; you can see it that index is perfectly lining itself up for dandy rally of the Stage 1 and 2 for the time being - Appreciate it while you can.

Overseas market

Eurozone equities market trimmed some of Monday gains by finishing lower, shaving some of yesterday's substantial gains amid renewing pressure on bond yield rates, along with smoldering Brexit uncertainties, and Italian political turmoil. The German DAX Index fell by 0.6%, the French CAC 40 Index fell by 0.5%, while U.K.'s FTSE 100 Index slumped by 0.9%. 

The equities across the Asia-Pacific region returned a mixed performance throughout trading on Tuesday. China's Shanghai Composite Index edged down by 0.1%, H.K Hang Seng decreased 60 points or 0.23%, while Japan's Nikkei 225 Index climbed by 0.6%, BSE SENSEX index decreased 74 points or 0.2%. While Kospi and ASX 200 increased 20 points or 1.05% and 78 points or 1.2% respectively.

Precious metals

Investors and traders bought the dip in the overnight market, carrying both Gold and Silver markets higher. That energy carried over to the open in N.Y. Comex. Currently, the Gold is trading around $1500 – down roughly $8 on the day. Silver is down 6¢ is hovering just over $17 mark. Both precious metals seem to be staying solidly over their Maginot lines level.

Investors and traders bought the dip in the overnight market, carrying both Gold and Silver markets higher. That energy carried over to the open in N.Y. Comex.The Gold Market
(Click the Image to Enlarge)

Technical Analysis and Outlook

The metal Inner Gold Rally $1,555, and Outer Gold Rally $1,590 are currently at play respectively. We are now well into our rallies zone, trading between Key Res $1,525 and Mean Sup $1,500.

Bitcoin

Investors and traders bought the dip in the overnight market, carrying both Gold and Silver markets higher. That energy carried over to the open in N.Y. Comex. Currently, the Gold is trading around $1500 – down roughly $8 on the day. Silver is down 6¢ is hovering just over $17 mark. Both precious metals seem to be staying solidly over their Maginot lines level.

Bitcoin continues to linger against the other significant safe-haven assets, such as Gold, the Japanese Yen, and the United States Treasuries, which have been rallying collectively earlier this monthThe Bitcoin Market
(Click the Image to Enlarge)

Technical Analysis and Outlook

The Bitcoin is holding above Maginot $10,000 line. Trade Selector Signal trend model remains on the bullish side, and current pullback to Mean Sup $9,415 is possible. The intermediate upside target is Mean Res $10,900, while additional mean and key resistance are resting above.

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