US Stocks Test on Fed Rates and Global Growth Concerns

US Stocks Test on Fed Rates and Global Growth Concerns

US Stocks Test on Fed Rates and Global Growth Concerns

$DIA, $SPY, $QQQ, $RUTX, $VXX

  • The S&P 500 index closed just above its 200-Day MA, a Key indicator of long-term price trends.

US stocks opened lower as Chinese stocks fell overnight, sparking concerns about the impact of trade tensions on China’s economy.

Plus, concerns mounted over the possibility of strained relations between the US and Saudi Arabia, further denting investors’ appetite for risk amid global trade tensions and rising interest rates.

The benchmark S&P 500 index closed just above its 200-Day MA, a Key indicator of long-term price trends.

S&P 500 technology and consumer discretionary stocks fell more than 2%, as did the tech-heavy NAS. Among the S&P’s major sectors, only utilities and real estate, considered defensive, avoided losses.

US stocks declined further after US Treasury Secretary Steven Mnuchin pulled out of an investor conference in Saudi Arabia as the White House awaited the outcome of investigations into the disappearance of Saudi dissident Jamal Khashoggi.

Secretary Mnuchin’s decision sparked worries of potential strain in US-Saudi relations. Investors raised concern that if Saudi Arabia were sanctioned, it could restrict Crude Oil supply and prompt a quick rise in energy prices.

In energy, WTI Crude Oil extended Wednesday’s slide, settling 1.4% lower at 68.71 bbl, marking a 1-month low. The Crude Oil-sensitive energy sector ended 0.5% lower.

Further, Concerns over rising interest rates following Wednesday’s release of the FOMC’s hawkish mins from its September meeting also pressured Wall Street’s major indexes.

Thursday, the major US stock market indexes came in at: DJIA -327.23 at 25379.45, NAS Comp -157.56 at 7485.33, S&P 500 -40.13 at 2768.92

Volume: on all US exchanges saw 7.79-B/shares exchanged.

  • NAS Comp +8.4% YTD
  • S&P 500 +3.6% YTD
  • DJIA +2.7% YTD
  • Russell 2000 +1.6% YTD

Decliners outnumbered advancers on the NYSE by a 3.47-to-1 ratio, and on the NAS, a 3.26-to-1 ratio favored decliners.

The S&P 500 posted 5 new 52-wk highs and 36 new lows

The NAS Comp recorded 16 new highs and 128 new lows.

HeffX-LTN’s US Major Stock Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
18 October 2018 QQQ 173.38 Bearish (-0.33) 169.65 174.86
18 October 2018 DIA 253.79 Bearish (-0.32) 253.74 256.20
18 October 2018 SPY 276.89 Bearish (-0.34) 274.03 279.27

Stay tuned..

The following two tabs change content below.

Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

Latest posts by Paul Ebeling (see all)

You must be logged in to post comments :  
CONNECT WITH