The S&P 500 ended the day unchanged, with Nvidia (NASDAQ:) leading the way with a 4% surge, while the broader market struggled with 342 stocks declining versus just 159 advancing. Risk indicators also climbed, as shown by higher readings on the CDX HY Spread index, the 1-month implied correlation index, and the , which measures market fear.
After a brief pause due to Japan’s market closure on Monday, the focus now shifts back to a busy economic calendar. Japan released its Producer Price Index (PPI) yesterday, shedding light on inflationary pressures. Today, the US will unveil its data, followed by Japan’s report, providing insight into its economic growth.
Upcoming days will bring more significant updates, with the US Consumer Price Index (CPI) on Wednesday and US on Thursday. Stay tuned for more market-moving data.
The big question remains – what will this news tell us? Will it impact Japan’s central bank (BOJ) and the US central bank (Fed) decisions on rates? The market is like a game of roulette, waiting for the data to reveal its next move.
Yen Pairs May Hint at Market’s Next Move
By Friday, the USD/JPY pair could see a significant move, influencing the stock market. The key level to watch is 147.85 on the USD/JPY. A break above could signal a move towards 149 or higher.
If the USD/JPY doesn’t breach 147.85, we might see a return to Monday’s lows. It appears to be forming a triple-top pattern, but confirmation will come with a breakout or breakdown from the mentioned levels.
Technical analysis suggests a potential drop in the USD/JPY pair, with patterns indicating a bearish trend. Keep an eye on these levels for potential market direction.
Additionally, watch for the gap at 5,200 on the chart, waiting to be filled from last week’s jobless claims data. This gap could impact market sentiment and stock movement.
Ultimately, the data’s impact on the USD/JPY pair will dictate stock market movements. Stay informed and prepared for potential market shifts.