CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

European Open Volatility Hints at an Upside Break for the SP 500

Article By: ,  Market Analyst
September 16, 2021 1:56 AM

Asian Indices:

  • Australia's ASX 200 index rose by 44.6 points (0.6%) and currently trades at 7,461.60
  • Japan's Nikkei 225 index has fallen by -253.91 points (-0.83%) and currently trades at 30,259.09
  • Hong Kong's Hang Seng index has fallen by -494.39 points (-1.97%) and currently trades at 24,538.82

UK and Europe:

  • UK's FTSE 100 futures are currently up 0.5 points (0.01%), the cash market is currently estimated to open at 7,016.99
  • Euro STOXX 50 futures are currently up 4.5 points (0.11%), the cash market is currently estimated to open at 4,150.44
  • Germany's DAX futures are currently up 8 points (0.05%), the cash market is currently estimated to open at 15,624.00

US Futures:

  • DJI futures are currently up 236.82 points (0.68%)
  • S&P 500 futures are currently down -9 points (-0.06%)
  • Nasdaq 100 futures are currently down -3.5 points (-0.08%)

 

Asian indices lower, futures mixed

Japan’s equity markets failed to hold onto earlier gains as investors likely booked profits after an explosive bullish run. A large bearish engulfing candle formed on the Nikkei 225 after printing two Doji’s just off its February high, and failing to close to a 30-year high. Given the size of today’s candle we suspect an (arguably overdue) correction is now underway.

The Hang Seng was the weakest performer, shedding -2% and falling to its lowest level this year. Casino stocks weighed on the broader market as gaming consultations were underway ahead of casino rebidding.

 

The S&P 500 E-mini futures contract saw a false break below trend support this week. Price action continues to hold above the 50-day eMA and the fact the false break did not even test it show that bullish momentum is building. Also note that yesterday’s elongated bullish candle on the dour-hour chart was the most volatile candle since the one seen on the 20th August, which was just off structural lows ahead of its next rally. We are therefore bullish above the 4425 low and now seeking a break above 4483.50 to assume bullish continuation.

 

FTSE 350: Market Internals


FTSE 350: 4053.58 (-0.25%) 15 September 2021

  • 70 (20.00%) stocks advanced and 268 (76.57%) declined
  • 5 stocks rose to a new 52-week high, 14 fell to new lows
  • 66% of stocks closed above their 200-day average
  • 50.86% of stocks closed above their 50-day average
  • 15.43% of stocks closed above their 20-day average

Outperformers:

  • + 5.4%   -  Tullow Oil PLC  (TLW.L) 
  • + 3.6%   -  EVRAZ plc  (EVRE.L) 
  • + 3.5%   -  Civitas Social Housing PLC  (CSH.L) 

Underperformers:

  • -10.5%   -  Restaurant Group PLC  (RTN.L) 
  • -6.61%   -  Trustpilot Group PLC  (TRST.L) 
  • -5.75%   -  Beazley PLC  (BEZG.L) 

 

Forex: Stella growth report for New Zealand

New Zealand’s GDP expanded by 17.4% in Q2, above the 16.4% expected to hit a record high. On the quarter GDP also posted a healthy 2.8% expansion which prompted some to speculate that RBNZ will now be on track to hike at their next meeting. However, as GDP is backwards looking and this data set does not include the negative impact of recent lockdowns, it remains uncertain as to whether RBNZ will actually hike. We think it would be shrewd to wait for any such confirmation from RBNZ during public addresses over the coming week/s to see if a hike garners any merit.

A host of US data released at 13:30 BST includes employment data, business sentiment and retail sales. With employment claims sitting at post-pandemic lows following softer-than-expected-inflation, a surprise uptick of claims could spook dollar bulls further. Couple that with dire retail sales and we could have a bearish session for US on our hands (in which case gold, silver and copper might gain some bullish attention). Essentially any data between now and up to next week’s FOMC meeting could leave the US dollar vulnerable to pockets of volatility.

 

Learn how to trade forex

 

Commodities break broadly higher

The CRB commodity index broke to a 6-year high yesterday, after breaking out of the flag pattern the daily chart mentioned in yesterday’s video. Our bias remains bullish above 216.85 and its next target is the 227.47 high.

WTI also broke higher and trades around 72.80. Should oil prices continue higher it could provide further support for Wall Street (as it did yesterday) and help the S&P E-minis contract break above resistance.

 

Up Next (Times in BST)

You can view all the scheduled events for today using our economic calendar, and keep up to date with the latest market news and analysis here.

 

How to trade with City Index

Follow these easy steps to start trading with City Index today:

  1. Open a City Index account, or log-in if you’re already a customer.
  2. Search for the market you want to trade in our award-winning platform.
  3. Choose your position and size, and your stop and limit levels.
  4. Place the trade.


StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024