Forex Blog by Greg Secker

Yesterday – notes Greg Secker – the Dow moved to end 150 points up on the day, the suggested blip during the afternoon materialised in a 40 point move in 2 minutes, to be immediately reversed, on the back of news that Pending Homes Sales in the US was down by nearly 5% (nearly 60% lower than forecasts suggested) Despite the positive overall movement the previously mentioned consolidation continues with little reason to pinpoint a potential breakout. With no major news and just one very minor report regarding Mortgage Applications compiled by the MBA today at noon (British Summer Time) apart from watching the potential blip at that point, the indications are that another relatively calm day will be offered.  The FTSE closed only 60 points down on the close of the previous day but, with the upward movement of the Dow towards its close, has left the FTSE called up at the open. With an expectation of a further trail down after the open, followed by a retracement on the news at 8.30 (BST), the possibility of then hitting the recent resistance at the 5520 mark is high.  The NASDAQ and S&P are still and will continue on in their consolidation ranges. Finally Oil is trading at $136.700 per barrel and Gold is trading at $922.500 

Yesterday – notes Greg Secker – the Dow, after an unsettled response to the break, finished around 50 points down but not before it had dropped down through the 11150 level having previously tested 11400. Today, having tested in both directions yesterday, indications suggest a calmer day, if not still confirming the overall weakness and consolidation as previously mentioned. The FTSE, writes Greg, closed virtually where it opened and again progressed in an undecided fashion throughout. For today indications are more a composed trading day reflecting the Dow and with an expectation of continuation of the overall downward trend of the last few weeks, entered into back on May the 20^th. The Nasdaq and S&P are still and will continue on in their consolidation ranges. Just one point of caution, with the markets looking for anything of interest to overreact to, there is news out today for Pending Home Sales in the US at 3pm (British Standard Time) generally hardly even blinked at but this may produce the surprise market blip that the unemployment figures on July 2^nd did, so watch closely at around this time. Finally Oil is trading at $142.340 per barrel and Gold is trading at $932.000  

As expected Friday’s trading on the Dow Jones, with the exchange shut, was quiet, yet still managed a 50 point drop, with both the S&P and NASDAQ trailing downward to close lower on the day. A less volatile week than the previous two, ending over 110 points down on the week’s open. Today after a long weekend a muted response is expected as trading resumes, with indication of continued weakness and further suggestion of the general consolidation. The FTSE, writes Greg, ended down 50 points on the day with the majority of that fall occurring within the first hour of trading. Again for the FTSE, a less volatile week than the last two, but still managing a lower close on the week to extend the downward trend. With no major news either side of the Atlantic until Wednesday’s UK Trade Balance and Thursday’s Bank of England Rate Decision, the continuation of last week’s choppy movement is expected for today. Finally Oil is trading at $143.790 per barrel and Gold is trading at $926.200 

 

Yesterday – notes Greg Secker – as expected the Dow Jones reacted strongly to the Nonfarm payroll announcement dropping over 150 points at the break of the news to then reverse and pass back up and beyond the 11300 level where it oscillated to close around 60 points up from the day’s open. Today the market is closed so caution must be exercised with a relatively sideways movement expected. Over the next few weeks trading may form into a consolidation between 11100 and 11400 as the summer season has its effect and with the looming race for the Whitehouse bringing its presence to bear with gaining momentum into early autumn. Today the Dow is expected to fall slightly but with the market closed the main focus will be towards Monday’s movement. Yesterday – notes Greg Secker – the FTSE followed suit but encouragingly finished up over 100 points from the day’s open. The expectation for today is a fall from the open followed by gradual oscillation without the drive of volume direction from across the pond. The S&P and the NASDAQ are both still within their consolidation patterns and there is no indication for a change today. Finally Oil is trading at $145.590 per barrel and Gold is trading at $935.600   

 

Yesterday – notes Greg Secker – the Dow Jones fell steeply in the second half of trading in reaction to poor employment figures, and ended testing the 11200 resistance. Today is a premature end to the week due to America’s Birthday celebrations tomorrow and with the Non Farm Payroll and Manufacturing Payroll announcements due out at 1.30pm (BST) again a day early, the tentative upward bounce off the major number may well be reversed early this afternoon. The Nasdaq and S&P both dropped sharply also, nearly reaching overall lows and further weakness is likely following the current trend. The FTSE, writes Greg, rallied yesterday from its open but then failed to keep the momentum and trailed downward to reach a low not seen since January spurred on by the Dow’s fall. Today’s upward movement following the opening may also reverse early this afternoon as the forecasts suggest a worsening position over last month’s announcements in the US coupled with the US market makers closing their positions early for the longer break, caution is the watchword. Oil is trading at $144.450 per barrel and Gold is trading at $947.200