DJIA: Steven Mnuchin cheered investors
US Treasury Secretary Steven Mnuchin during his yesterday
speech said that the tax reform plan will be "very, very soon."
This plan will be "decisive, essential, and will be the main priority for
President Trump. " After
Presidential elections in the United States against the backdrop of pre-election promises by Donald
Trump tax reform and stimulate fiscal policy US
stock markets and indices grew actively and government bonds were subject to
large-scale sales. Now in the US stock markets, the reverse
picture.
investors
still exerts pressure increasing geopolitical tensions in the world after
US missile strikes on Syria. The growing tension between the US and North
Korea also does not increase the appetite for buying riskier assets. investors
again prefer government bonds and other safe-haven assets - gold and the yen.
also common
picture spoil some of the negative macro data from the US. So, published
Yesterday the US Department of Labor data showed a reduction in the number of repeat applications
for unemployment benefits last week
and increase in the number of initial claims (244,000 versus 234,000 at
last week). Manufacturing Index, which is interconnected with
ISM index fell in April to 22 points (vs. 32.8 in March).
Nevertheless, the major US stock indexes
today, boosted by reports of companies, exceeding economists' expectations.
Dow Jones Industrial Average rose in
Thursday at 0.9% to 20582 points, S P500 - to 0,8%, Nasdaq Composite - 0.9%. The yield on 10-year-olds
US Treasury bonds on the background of their sales rose to 2.257% from 2.202%
on Wednesday, which also contributed to the strengthening of the dollar. US Treasury
Steven Mnuchin cheered investors by returning their hopes on the fact that Trump plan
to stimulate the US economy will still be implemented.
Today, there is little activity in the financial markets
traders on the eve of the first round of the presidential elections in France, which is
It will be held this Sunday. The risk
that the election results can disrupt the integrity of the EU, is still holding back
investors from taking action on the financial markets. If you win Marin Le
Pins, which promised to withdraw France from the EU, the euro and European stock
markets may literally collapse. Behind them may follow US stocks
markets. Dramatically increase the demand for gold and the yen.
From the news today is to provide data from the US. AT
13:45 (GMT) published indexes of business activity in the manufacturing sector,
services sector (PMI) released by the Markit US in April (preliminary value). Index
It is an important indicator of the state of the US economy as a whole. At 13:30 begins
the speech of the Federal Reserve Bank of Minneapolis Nile Kashkari, which is likely to be
follow in the wake of the general statements of other members of the Fed's relatively
monetary policy in the US and would vote in favor of an early rate hike
the US Federal Reserve and the reduction of the budget. This will reflect positively on the dollar, but it is unlikely
It supports US stocks.
Support and resistance levels
Since the beginning of the previous
month, the DJIA is mainly reduced. Since the end of February reached the absolute
maxima near the mark 21170.0 index DJIA lost about 3.5%, down to
the current level of 20600.0. However, after yesterday's statement by the Minister
US Treasury Stephen Mnuchina DJIA index rose, broke the short-term resistance level of 20555.0 (EMA200
at 1 hourly chart), however, resistance was suspended 20620.0 (top level
the boundary of the descending channel and EMA200 on 4-hour chart).
indicators
OsMA and Stochastic on the 1-hour, 4-hour chart
re-deployed on short positions.
If the index
DJIA will return to the level of 20555.0, its
reduction can proceed to the nearest support level of 20360.0 (lower
limit of the downward channel on the 4-hour and daily charts).
If
downward dynamics will continue to grow, then the index may continue to decline
support levels 1990.0 (the December highs), 19850.0 (Fibonacci level
23.6% correction to an increase in the wave with the level of 15660.0 after recovery in February
current year to a collapse of the markets since the beginning of the year. The maximum of the wave
and 0% Fibonacci level is near the level of 21160.0). Further reduction of the breakdown level and 19600.0
(EMA200 on the daily chart) will be
critical for the bullish trend the DJIA.
For
return to the index of purchases necessary to gain a foothold above the level of 20750.0 (top
border range between the levels 20750.0 and 20360.0). While dominated by short-term
descending correctional dynamics.
Support levels: 20555.0, 20360.0, 19990.0,
19850.0, 19600.0
Resistance Levels: 20620.0, 20750.0,
20886.0, 20980.0, 21170.0
Business scenario
Buy Stop 20650.0. Stop-Loss 20540.0. Take-Profit 20750.0,
20886.0, 20980.0, 21170.0, 22000.0
Sell Stop 20540.0. Stop-Loss 20650.0. Take-Profit 20360.0, 19990.0, 19850.0, 19600.0
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