S&P 500 slips ahead of Nvidia earnings while USD/JPY, silver price advance
Technical analysis of the S&P 500 as it slips ahead of Nvidia earnings while USD/JPY and silver advance.
Macro update
Wall Street extends its slide:
The S&P 500 fell for a fourth straight session as valuation concerns weighed on major tech names, while the Nasdaq 100 dropped 1.2%.
Nvidia results in sharp focus:
Caution prevailed ahead of Wednesday’s earnings from the artificial intelligence (AI) leader, with Nvidia down nearly 3% and Asian futures softer.
Jobs data returns to centre stage:
Thursday’s delayed September US employment report is expected to show further labour-market cooling, following a rise in jobless claims.
Global markets cautious:
Asian and European futures traded mixed as investors awaited Nvidia’s results and reassessed diminishing odds of a December Federal Reserve (Fed) rate cut.
UK inflation cools marginally:
Headline consumer price index (CPI) eased to 3.6% in October from 3.8%, in line with expectations, but remains well above the 2% target, leaving the UK-euro area inflation gap uncomfortably wide.
S&P 500 drops close to key support
The S&P 500 has seen four straight days of declines and so far slid to 6,754, close to its key 6,569-to-6,551 support zone. It consists of the mid-September-to-October lows.
We expect this support area to hold, at least in the short-term. If not, a more significant correction may take the S&P 500 towards the August high at 6,508.
As long as the 6,569-to-6,551 support area holds, the 7 November low at 6,631 is expected to be revisited, as well as the 22 October low at 6,656.
For a sustained recovery to be seen, a rise above the 6,699 September peak would need to be witnessed.
S&P 500 daily candlestick chart
USD/JPY trades in nine-month high
USD/JPY is in the process of rising towards its 3 February peak at ¥155.88, a rise above which will put the late December 2024 low at ¥156.02 on the map.
Still further up beckon the mid-November 2024 high at ¥156.75 and the mid-January low at ¥156.92.
Support sits between the late October-to-early November highs at ¥154.48-35 with an uptrend line coming in at ¥154.34.
USD/JPY daily candlestick chart
Silver price recovers
The silver price has resumed its ascent, bouncing off Tuesday's $49.3597 low and targeting the $52.00 region and above.
A slip through this week's $49.3597 low would likely lead to a visit of the August-to-November uptrend line at $48.3673, though.
Silver daily candlestick chart
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