Hello traders everywhere. After what felt like a small positive victory on Friday has quickly subsided after we woke up this morning to news of growing global tensions with Saudi Arabia and yet another sell-off in the tech sector, a falling dollar, and treasuries.
The dollar is trading near a two-week low against its peers after U.S. retail sales disappointed in September. West Texas crude oil traded around $71 a barrel, less than a dollar away from issuing a red weekly Trade Triangle, amid tensions between Saudi Arabia and the U.S. over the disappearance of a prominent journalist and gold is headed toward its fourth advance in five days.
The DOW was in positive territory for most of the morning trading above its 200-day moving average, the only index to do so, but has slipped into negative territory this afternoon. Both the S&P 500 and NASDAQ are both trading below their 200-day moving average after opening the week in negative territory. While the NASDAQ has already triggered a new red monthly Trade Triangle the S&P 500 is holding on at the moment, but that could change if it continues to trade below the 200-day Moving Average.
Key Events Coming Up This Week:
- APEC finance ministers meet in Port Moresby, Papua New Guinea
- China's new yuan loans may have risen to 1.36 trillion yuan ($196 billion) in September from August’s 1.28 trillion yuan as officials sought to buoy economic growth. On Tuesday, the consensus is for CPI to pick up to 2.5% growth and PPI to slow to 3.6%
- Third-quarter GDP for China comes Friday, with headline growth forecast to slow to 6.6% year on year from 6.7%, in addition to last month's retail sales and factory output
- Minutes from the Federal Reserve's latest policy meeting are due on Wednesday, with investors focused on projections for further interest rate rises
- Goldman Sachs, Morgan Stanley, and Netflix are among companies reporting this week
- Euro-area governments, including Italy, must turn in fiscal budget proposals to the European Commission by midnight Monday
Key Levels To Watch Next Week:
- S&P 500 (CME:SP500): 2,940.91/2,698.95
- Dow (INDEX:DJI): 26,951.81/24,077.56
- NASDAQ (NASDAQ:COMP): 8,107.38
- Gold (NYMEX:GC.Z18.E): 1,188.50
- Crude Oil (NYMEX:CL.X18.E): 75.08/70.80
- U.S. Dollar (NYBOT:DX.Z18.E): 93.41
- Bitcoin (CME:BRTI): 6,729.51