The markets are quiet in overnight electronic trading, as the headlines from the war continue to be a massive issue.
The Nasdaq 100 has pulled back just a little bit in overnight trading, although it is Good Friday and things will be closed down, the reality is that overnight, we have had a little bit of reaction, especially in the CFD markets. It is slightly negative, but quite frankly, you can’t read too much into it.
The reality is that if we can break above the 200-day EMA, it’s likely that the Nasdaq 100 will continue to go higher. We have a long weekend ahead of us that will probably involve a lot of back-and-forth statements between the Americans and the Iranians, which could be a major factor as to where we wake up on Monday. Right now, it looks like we are trying to recover, but we’ll see.
The Dow Jones 30, of course, has done the same thing, and it is just below the 200-day EMA as well. Here I want to see the Dow Jones 30 break above 47,000. I think that’s the next move, assuming that risk appetite is still there.
It does look like a nice correction that a lot of traders will probably be buying into. 45,750’s line in the sand, though, if we were to break down below there, I’d be concerned about the Dow Jones 30 at least for the short term. I do think we’re getting fairly close to the idea of a resolution of the war that should be good.
The S&P 500 is also just below the 200-day EMA and just like the other two indices it did fall a bit in electronic futures and overnight CFD trading. But the 6,500-level underneath could offer support. It certainly seemed to be during the Thursday session.
We do get job numbers coming out of the United States today, but again, the market won’t be open, so that comes into play right along with those statements coming out of the Middle East and Washington. I suspect the headlines from the war will probably be more important unless, of course, non-farm payroll comes out way off the mark. As things stand right now it’s more about geopolitics and the inflationary effects of the Strait of Hormuz being closed than anything else.
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Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.