|Day's range||26,926.68 - 27,194.75|
|52-week range||21,712.53 - 27,398.68|
While some wait for a recession, others are watching for a potential jump in inflation that could derail any thoughts of future rate cuts by the Fed.
The Dow Jones Industrial Index or DJIA has risen 15.5% year-to-date. The index is trading at 26,935.07, which is 1.9% below its 52-week high.
Geopolitics is in focus, with Brexit, Iran, and the U.S – China trade war likely to keep the markets busy. Stats and the RBNZ are also of influence.
The surprise move by the Chinese delegation may have rattled investors but White House officials seemed to take it in stride. Furthermore, President Trump had no response on Twitter, which means the event has largely been dismissed.
US stocks sank on Friday, closing the week in the red after an abruptly canceled visit by Chinese officials spooked investors on Wall Street. With no apparent explanation, Chinese agricultural officials on Friday scrapped hastily planned trips to farms in Montana and Nebraska and instead returned to China.
Based on the early price action and the current price at 26967, the direction of the December E-mini Dow Jones Industrial Average futures contract into the close on Friday will be determined by trader reaction to 27009.
Skilled technical traders must be aware that price is setting up for a breakout or breakdown event with recent Doji, Hammer and other narrow range price bars. These types of Japanese Candlestick patterns are warnings that price is coiling into a tight range and the more we see them in a series, the more likely price is building up some type of explosive price breakout/breakdown move in the near future. The ES (S&P; 500 E-mini futures) chart is a perfect example of these types of price bars on the Daily chart (see below).
Boston Fed President Eric Rosengren said he disagreed with the Fed's decision to lower rates on Wednesday because the U.S. economy appears healthy, instead worrying that leverage could build up in the system.
Wall Street closed out a volatile week with losses Friday as investors worried that upcoming trade talks aimed at resolving the costly trade war between Washington and Beijing could be in trouble. The benchmark index is still up 2.2% for September. The afternoon market slide came as investors reacted to published reports indicating Chinese officials canceled a planned trip to farms in Montana and Nebraska and would be returning to China.
US stocks were a little higher at the open on Friday, with major indices inching toward fresh records at the end of tumultuous week. Investors were mulling President Donald Trump's decision to exempt hundreds of goods from tariffs on Chinese imports in hopeful sign trade hostilities are easing ahead of negotiations expected next month. About 10 minutes into the day's trading, the blue-chip Dow Jones Industrial Average was up 0.3 percent at 27,168.90, nevertheless leaving it a little in the red for the week that featured a Federal Reserve interest rate cut and an attack on Saudi oil facilities.
St. Louis Fed President James Bullard said he would have preferred a 50 basis point cut in the Federal Reserve's meeting on Wednesday, saying trade risks and inflation warrant "aggressively" cutting rates.
Investing.com – Wall Street inched forward on Friday as traders monitored trade developments between the U.S. and China, while easing monetary policy around the globe increased hopes that central banks will help soften the blow from the drawn-out trade war.
Global stock markets traded in fairly narrow ranges on Friday at the end of a fairly eventful week that saw oil prices spike sharply after attacks on Saudi oil facilities and the Federal Reserve cut interest rates again. Coupled with the Fed's decision to cut rates again, the mood in stock markets has remained fairly positive, not least on Wall Street where both the Dow Jones industrial average and the broader S&P 500 index were not far off record highs. "It's been a bit of a strange week for equity markets, slipping back initially at the start on concerns that the sharp move higher in oil prices caused by last weekend's drone strike on Saudi Arabia's oil infrastructure might knock the stuffing out of the global economy in the coming weeks and months," said Michael Hewson, chief market analyst at CMC Markets.
The Dow Jones Industrial Average fell 53.44 points (or 0.2%) today, possibly because the market gave a thumbs up to yesterday's 0.25% rate cut by the Fed.
US stocks went nowhere on Thursday as investors lost their appetite in afternoon trade, a day after the US central bank delivered a widely expected shot of stimulus. Meanwhile, the broader S&P 500 was flat, hovering near record levels at 3,006.79, while the tech-heavy Nasdaq was 0.1 percent higher at 8,182.88. Also on Thursday, a Hong Kong newspaper cited an informal adviser of President Donald Trump as saying Washington was ready to escalate the US-China trade war if no agreement was reached soon.
Investing.com - A strong opening stock rally Thursday faded in the afternoon in part because of worries about the upcoming U.S.-China trade talks.
As anticipated, China's central bank reduced its 1-year loan prime rate to 4.2% from 4.25%, slightly easing monetary conditions. U.S. and Chinese officials were meeting in Washington to prepare trade negotiations next month in the trade war that has cast a shadow on growth.
Based on the early price action and the current price at 27207, the direction of the December E-mini Dow Jones Industrial Average the rest of the session on Thursday is likely to be determined by trader reaction to the downtrending Gann angle at 27191.
Wall Street drifted higher early Thursday as investors digested the latest monetary policy announcements from the US Federal Reserve. The Fed on Wednesday lowered benchmark interest rates by a quarter of a percentage point and Fed Chairman Jerome Powell said policymakers would be ready to act aggressively if the world's largest economy began to deteriorate, lifting market spirits. Analyst Patrick O'Hare of Briefing.com wrote that Powell's pronouncements did not entirely explain the market's reaction.