Stocks decreasing on the last day of the first half 

Market confidence in FED supports

By: Ahura Chalki

Market analyst – IFC Markets

Earlier in the Asian markets, Nikkie 225 closed 0.07% lower, and Hang Seng was down 0.57%, but Shanghai gained 0.50%. In Europe, suffering was much more. UK100 after missing GDP numbers lost 0.21%. In Germany, while the unemployment rate did not change at 5.9%, Dax30 losing 0.70%, and French CAC40 is down, more than 0.34%. 

In the United States, economic data generally were better than expected. For example, ADP Nonfarm Employment Change in June at 692K was much better than 600K estimates, and Pending Home Sales in May rose 8%. Another data of a day in the US was the Chicago PMI for June; even if it decreased to 66.1 from 75.2 In May, it is still way above 50, which means that economic activities are going well. 

Today is the last day of the second quarter as well as the first half of 2021. So far in this year, the S&P 500 is up 14%, Nasdaq Composite and the Dow Jones Industrial Average are up almost 12%. These numbers tell us that investors believe in the solid economic recovery from the pandemic; simultaneously, worries about higher inflation for longer-term are decreasing, and FED will continue its supports for a while. 

While The S&P 500 and the Nasdaq Composite both closed Tuesday at record highs, today, in the first hours, Dow Jones is up 129 points to 34,421, SP500 continues its gain to 4,297, but Nasdaq is giving back some of its yesterday gains, decreasing to 14,513 (-10%).   

ND 100 technical review – H1 

Candles forming under Parabolic SAR dots, price decreasing and OBV trend line is flat, and while MACD line crossing down its signal line, technical indicators supporting lower prices. Trading under PP at 14,555 will open the doors for S1 and S2, respectively at 14,515 and 14,435. 

Nasdaq Technical analysis


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