PRICE ACTION & MARKET BEHAVIOR
The third quarter of 2015 have proven to be an extended trading of a wide range consolidation for the Dow Jones Industrial Average, with a high @18351 and a low price @17039 levels respectively. In Reference to Market view on the DOW & USD 6.13.15 This has been established since December 2014 to the present. With the recent low @17125 which came quite close to the 17039 support before pulling back to the closing @17477.40 slightly below the benchmark @17500 levels and a retest on the next low would not be discounted. And the main catalyst for price action are commonly related to the fundamentals on Greece, Central banks policy, Ukraine, Oil, Gold and the Chinese recent cut in interest rates just to name a few.
The third quarter of 2015 have proven to be an extended trading of a wide range consolidation for the Dow Jones Industrial Average, with a high @18351 and a low price @17039 levels respectively. In Reference to Market view on the DOW & USD 6.13.15 This has been established since December 2014 to the present. With the recent low @17125 which came quite close to the 17039 support before pulling back to the closing @17477.40 slightly below the benchmark @17500 levels and a retest on the next low would not be discounted. And the main catalyst for price action are commonly related to the fundamentals on Greece, Central banks policy, Ukraine, Oil, Gold and the Chinese recent cut in interest rates just to name a few.
With that said, the basic comparative analysis in line with the Dow is of course the USD recent decline and turning price point from a registered high @100.39 basis point last March 2015 and a low @93.13 in May. The current price still above the 95.50 remains well within it trend while a close below the 94.80 levels would tend to have a negative effect for a follow through. However, the contradicting case scenario may only the expectations of the rate hike which may already have been priced in the market for some time.
Corrective moves and daily price pullback may well be seen on a daily and weekly basis but still does not constitute a change of current market sentiments prevailing today. Market conditions for a continuing decline for stocks and the USD is still hovering with investors uncertainty playing a bigger role while continued position adjustments and liquidations would continue as we see prices moving in both directions. Volatility would still prevail with fundamentally driven market prices dictating the course on a daily and weekly activity.
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