Wall Street Wednesday Technical Trade Note – 31 October 2018
With our outlook of the 17th playing out nicely we might see some relief coming back to the U.S. markets this week. With a higher Non-Farm Payrolls number expected for Friday and buyers returning to the market we might see the index tick higher from here.
Taking a closer look at the chart of the Wall Street 30 we can see the index sold off over 10% from its September high to the recent lows we saw on Monday. Looking at point 1.) If the upward momentum continues coupled with a better than expected NFP number, we might see the Index rally even higher.
I would be cautious as seen in Point 2.) the price action is still below the 200-day SMA (White dotted line) and would need to close above this level to support the bullish momentum. We might just as easily see the bears enter the market once more if the 200-day SMA does not hold.
Take note:The U.S. 10-year Bond Yield is currently moving higher as well and should be watched carefully this week.
Source – Bloomberg
Image Source: Wolf of Wallstreet
Remember that trading puts your capital at risk. Always trade cautiously and never above your means.
MUST READ: Non-Farm Payrolls announcement 2nd November 2018 (Click to read)
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