US Stocks Close Mixed, Dollar Eases, Bitcoin Soars

Market Wrap: October 24, 2023

Stocks

• US stocks closed mixed, with the S&P 500 down 0.17%, the Dow Jones down 0.58%, and the Nasdaq up 0.30%.

• Semiconductors, media, and consumer services sectors were the top performers, while transportation, energy, and banks sectors were under pressure.

• Nvidia, Meta Platforms, Netflix, and Amazon.com were among the top gainers.

• Chevron agreed to acquire Hess Corp for $53 billion.

• Okta Inc sank after the company announced that its client support system was hacked.

• Walgreens Boots Alliance was upgraded to “overweight” at JPMorgan.

• Microsoft and Alphabet will report quarterly results after the market closes today.

Bonds

• The US 10-year Treasury yield settled 7 basis points lower on the day at 4.844%.

Commodities

• US WTI crude futures dropped $2.00 to $86.13 a barrel.

• Gold price retreated $8 to $1,972 an ounce.

Forex

• The US dollar eased along with Treasury yields. The dollar index retreated to 105.61.

• EUR/USD gained 75 pips to 1.0669.

• USD/JPY declined 15 pips to 149.71.

• GBP/USD increased 84 pips to 1.2248, and AUD/USD added 21 pips to 0.6335.

• USD/CHF fell 10 pips to 0.8911, and USD/CAD dropped 24 pips to 1.3691.

• Bitcoin soared 11% to $33,260.

Expected Today

• The HCOB manufacturing purchasing managers index for October is expected at 43.8 for the eurozone, 40.5 for Germany and 45.1 for France. Also, services purchasing managers index is estimated at 49.1 for the eurozone, 50.2 for Germany and 44.9 for France.

• The S&P Global manufacturing purchasing managers index for October is expected at 44.9 for the U.K. and 49.5 for the U.S. Also, services purchasing managers index is estimated at 49.8 for both the U.K. and the U.S.

• Germany's GfK consumer confidence index is anticipated to fall to -27.0 in November.

• U.K. jobless rate for the June-August period is expected to be steady at 4.3%.

Key Levels to Watch

• EUR/USD: Pivot: 1.0645, Support: 1.0620 & 1.0600, Resistance: 1.0710 & 1.0730

• GBP/USD: Pivot: 1.2210, Support: 1.2175 & 1.2140, Resistance: 1.2300 & 1.2330

• USD/JPY: Pivot: 149.85, Support: 149.40 & 149.25, Resistance: 150.00 & 150.15

• Dow Jones (CME): Pivot: 33240.00, Support: 33000.00 & 32850.00, Resistance: 33340.00 & 33480.00

Intraday Technical Analysis for EUR/USD, GBP/USD, USD/JPY, and Dow Jones (CME)

EUR/USD

• Pivot: 1.0645

• Our Preference: Long positions above 1.0645 with targets at 1.0710 & 1.0730 in extension.

• Alternative Scenario: Below 1.0645 look for further downside with 1.0620 & 1.0600 as targets.

• Comment: The RSI advocates for further advance.

GBP/USD

• Pivot: 1.2210

• Our Preference: Long positions above 1.2210 with targets at 1.2300 & 1.2330 in extension.

• Alternative Scenario: Below 1.2210 look for further downside with 1.2175 & 1.2140 as targets.

• Comment: The RSI advocates for further upside.

USD/JPY

• Pivot: 149.85

• Our Preference: Short positions below 149.85 with targets at 149.40 & 149.25 in extension.

• Alternative Scenario: Above 149.85 look for further upside with 150.00 & 150.15 as targets.

• Comment: As long as 149.85 is resistance, look for choppy price action with a bearish bias.

Dow Jones (CME)

• Pivot: 33240.00

• Our Preference: Short positions below 33240.00 with targets at 33000.00 & 32850.00 in extension.

• Alternative Scenario: Above 33240.00 look for further upside with 33340.00 & 33480.00 as targets.

• Comment: Intraday technical indicators are mixed and call for caution.

Please note that due to market volatility, some of the key levels may have already been reached and scenarios played out.