Morning Impact: 4/5/24
Equity Indices, Treasuries, FX, Metals, Energy, Ags, Softs and Crypto Futures
🌍 World Equity Indices Cash and US Index Futures
The complex trended higher overnight, following a solid session on Thursday before a sell-off in the last two hours of the trading day. This sell-off brought prices down to, and in some indexes, and actually below multi-week levels of chart support to depths previously unseen since mid-February, marking a significant decline. This is now a deepening correction from the March highs and most year-to-date significant for the mini DJI and mini S&P. Current conditions warrant caution as this downward trend may continue to deepen despite periods of stability. Clearly, we're in a correction, with the potential for this to mark the start of a deeper downturn, although the medium-term outlook remains market-friendly with the larger trend, pending stability. As for the mini NASDAQ, it’s been consolidating sideways for the past month, and the weakness brought price other end of this range; if it holds, obviously more consolidation but if it breaks, things may get interesting. Meanwhile the mini Russell oddly holds up, as it’s uptrend has already worked thru numerous corrections this year. It’s also holding decently above its March lows, which keeps the uptrend in tact. And so far this morning, it’s shaking off the weakness in treasures following NFP. Although year-to-date numbers show it to be the laggard of the group, it just may be the healthiest.
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