US Tech 100 and Germany 30 suffer technical shifts
Retail buy bias surges into heavy territory in the tech-heavy US Tech 100, shifts to slight buy in the Germany 30.
Wall Street technical analysis, overview, strategies, and levels
Brief moment for Wall Street taking its price to a short-term support level as seen on the daily chart, though with volatility rising easily going past its previous first support level and closer to yesterday's second support, conformist reversals failing on the initial move and meaning contrarian breakouts enjoyed a bit more.
Wall Street and Caterpillar were relative outperformers by the close, while the tech selloff meant Apple, Salesforce, and Microsoft were in the very bottom suffering losses.
US data showed its trade deficit worsen with a record negative reading, economic optimism out of TIPP worse than previous but still in optimistic territory, and factory orders growing at a slower than expected pace, elsewhere Yellen saying she sees no inflation problems after taped remarks pointed to potential rate rises.
Fed speak tonight, ISM's services, and ADP's NFP estimate that could show big gains ahead of Friday's official figures.
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US Tech 100 technical analysis, overview, strategies, and levels
Nasty US Tech 100 selloff yesterday that threw a real wrench into short-term technicals, which were already at greater risk of tilting due to the runup to recent highs and the proximity of long-term technicals to its price this time around. Conformist strategies failed, and it was clear that contrarian sell breakouts enjoyed the most, its overview showing signs of being more volatile than bullish.
Even if long-term technicals on the weekly time frame are still relatively more positive, clearly stalling though in both time frames and more so here, and where should volatility persist, could go beyond narrowed levels once more.
The gains for components in the green were limited at best, losses heavy on the other end for Incyte Corp Ltd (earnings beat, sales miss), IDEXX Laboratories Inc (despite beat), ASML Holding NV, and Apple Inc (DE).
More earnings today for some of its components: Alexion Pharmaceuticals Inc, ANSYS Inc, CDW Corp/DE, Cognizant Technology Solutions Corp, Exelon Corp, Foxtons Group PLC, Peloton Interactive Inc, PayPal Holdings Inc (All Sessions), T-Mobile US Inc, and Vertex Corporation up next.
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Germany 30 technical analysis, overview, strategies, and levels
It was a clean move lower that failed to offer reversal strategies a chance to enter, and meant only contrarian breakouts were on offer and offered plenty, the move throwing a clear wrench into technicals with some tilting into the negative, its price piercing the lower end of the band, and a negative DMI cross occurring.
It has also meant that the conversation has shifted from buy vs. sell to reversal vs. breakout given ranges narrowed significantly prior to yesterday’s move (and hence the warning on initiating fading strategies and reversals too hastily).
All its components finished in the red, the losses heaviest for Infineon, Merck, and Vonovia. There was a lack of Germany 40 data, though that changes today with services PMI out of Markit expected to be just above 50.
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