Markets: US stock indices snap the four day rally ahead of key private jobs data release
US Stock indices consolidated and were moderately lower. Treasury Note and Bond yields fell. Dollar consolidated but closed lower for the day and Gold was firm.
European and Asian indices performed better than the US equity indices today. German DAX was up 0.77% and Hang Seng index closed in the green up 0.6%. Interesting to note VIX, the fear index was down again today, down 0.45% but the VXN which is the volatility index for Nasdaq 100 was up 1.44%. Could somebody be buying some options to hedge? NDX, the Nasdaq 100 cash index closed in green being up 0.27%.
Debt markets
Yields fell across the 10 Year Treasury Note and the 30 Year Long Bond. We have been discussing a key pattern formation and the key resistance levels as shown on the charts below which also indicated lower yield and highlight the key resistance levels for the yields moving higher. Pattern point to 10 Year Treasury Not yield could fall as low as 3.7%.
Dollar
Dollar is hanging in there fighting for support around the 98-99 key level.
Gold
Comex Gold has a bullish bias as long as the key support level at $3117/oz is held as highlighted by the shaded region.
US Markets
We have some timing coming in between 8-9 June and we could perhaps see a pullback in the US equity indices. We will be watching the pullback very closely and with great interest as we are viewing this as a pullback in bull market as long as the 7th of April 2025 low is intact. If a pullback indeed materialise, 5645 on SPX (S&P 500 cash) will be a key level to watch as it is the 38.2% Fibonacci retracement and also from a market symmetry concept, it will be equal to the previous pullback we have seen in this rally higher since 7th April.
Stocks outperforming the S&P 500
Stocks making new 52 week highs
S&P 500 Stock
FTSE 100 & 250 and German DAX stocks
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