Market Insights Report - January 30, 2024

DAILY MARKET NEWSLETTER

January 30, 2024

MARKET WRAP: STOCKS, BONDS, COMMODITIES

On Monday, all three major U.S. stock indexes rebounded to achieve record closes. The Dow Jones Industrial Average climbed 224 points (+0.59%) to 38,333, the S&P 500 rose 36 points (+0.76%) to 4,927, and the Nasdaq 100 was up 175 points (+1.01%) to 17,596. 📈

Widespread expectations suggest that the Federal Reserve will maintain its key interest rate at 5.50%.

Consumer staples, consumer discretionary, and technology stock sectors led the market higher.

Tesla (TSLA) rebounded from very oversold levels, rising 4.19% to $190.93.

Microsoft (MSFT) rose 1.43% to $409.72, Nvidia (NVDA) climbed 2.35% to $624.65, and Alphabet (GOOGL) was up 0.87% to $153.51, all achieving record closes.

Amazon.com (AMZN) rose 1.34% after announcing that its planned $1.4 billion acquisition of iRobot (IRBT) will not proceed. iRobot (IRBT) slid 8.77%.

SoFi Technologies (SOFI) surged 20.21%. The digital personal finance company swung to a profit in the fourth quarter from a loss a year earlier.

Meanwhile, the U.S. 10-year Treasury yield declined 8.4 basis points to 4.076%.

Regarding U.S. economic data, the Dallas Fed manufacturing index dropped to -27.4 in January (vs -23 expected).

European stocks were little changed. The DAX 40 fell 0.12%, the FTSE 100 dipped 0.03%, while the Cac 40 edged up 0.09%.

U.S. WTI crude-oil futures dropped $1.09 (-1.40%) to $76.92 a barrel.

Gold price was largely flat at $2,032 an ounce. 🪙

MARKET WRAP: FOREX

The U.S. dollar index was stable at 103.46.

EUR/USD dropped 20 pips to 1.0832.

USD/JPY declined 65 pips to 147.50. This morning, Japan's data showed that the jobless rate dipped to 2.4% in December (vs 2.5% expected).

GBP/USD added 10 pips to 1.2708.

AUD/USD gained 37 pips to 0.6611.

USD/CHF slid 31 pips to 0.8613, and USD/CAD lost 36 pips to 1.3414.

Bitcoin continued to show upward momentum, climbing over 2% to $43,100. It has returned to levels above both 20-day and 50-day moving averages. 📈

MARKET WRAP: TECHNICAL ANALYSIS

GBP/USD Intraday: the upside prevails.

Pivot: 1.2680

Our preference: Long positions above 1.2680 with targets at 1.2735 & 1.2755 in extension.

Alternative scenario: Below 1.2680 look for further downside with 1.2660 & 1.2640 as targets.

Comment: Technically the RSI is above its neutrality area at 50.

USD/JPY Intraday: under pressure.

Pivot: 147.75

Our preference: Short positions below 147.75 with targets at 147.00 & 146.65 in extension.

Alternative scenario: Above 147.75 look for further upside with 148.05 & 148.30 as targets.

Comment: The break below 147.75 is a negative signal that has opened a path to 147.00.

EUR/USD Intraday: the upside prevails.

Pivot: 1.0810

Our preference: Long positions above 1.0810 with targets at 1.0850 & 1.0865 in extension.

Alternative scenario: Below 1.0810 look for further downside with 1.0795 & 1.0780 as targets.

Comment: Technically the RSI is above its neutrality area at 50.

Dow Jones (CME)‎ (H4)‎ Intraday: bullish bias above 38340.00.

Pivot: 38340.00

Our preference: Long positions above 38340.00 with targets at 38520.00 & 38620.00 in extension.

Alternative scenario: Below 38340.00 look for further downside with 38190.00 & 38060.00 as targets.

Comment: The RSI is mixed with a bullish bias. 📊

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