Gold 1778,33
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EURUSD 1,1847
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DJIA 34545,50
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OIL.WTI 75,325
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DAX 15616
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Not even a couple of days later, the US market is once again storming to historic highs. Indices are higher and closer to the area called the “pain zone for market participants”. Why is the upside so scary? Let’s find out.
S&P500
At the moment, the entire world is still in a state of pandemic and continues to vaccinate the population. There is little protection against the coronavirus, given that the new strain from India has begun to infect people who have already been vaccinated.
Most of the world’s banks have all but exhausted their monetary means of regulating the economy. It can be said that this ship of support money has now reached full speed and is adrift. Whether it will be able to stop quickly is a big question.
The world market has become a kind of peculiar game and risk, which does not reflect the current economic situation in any way. All this can lead to any negative driver sending markets into a very deep correction. Already now we can see that the market takes a new high, and then corrects quite strongly, and then another high and another correction. This behavior suggests that traders are just waiting for someone to be the first to start a sell-off trend. And then everything will follow a chain reaction. In such situations, the correction can easily reach 20-30%.
It is very scary to buy the S&P500 at the moment, because it is not clear where the profit will be and where the stop will be in case of a fall. The chart forms a “rising wedge” pattern, which according to technical analysis is a reversal pattern and very often breaks down.
Even though the summer is the holiday time, but now we should not relax. At any moment something important can happen that will start a global correction in the markets.
14.30 New jobs created outside agriculture in the US for June
14.30 Address by ECB head C. Lagarde
16.00 US factory orders for May
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