Weak US PMIs Support S&P 500, Nasdaq 100 and Dow Jones

Market Analytics and Technical Considerations

• S&P 500 rises ahead of FOMC meeting minutes despite a decline in US PMI.
• In spite of underlying risks, the Dow Jones retail attitude is positive.
• The Nasdaq 100 encounters trendline resistance, and there is little liquidity.

US equities have increased as liquidity and volume have decreased as a result of the economic data dump on the eve of Thanksgiving. Sturdy major indices are keeping stable overall, despite seasonality and the US holiday weekend contributing to a drop in trade volume.

The S&P 500, Nasdaq 100, and Dow Jones, the three major US market indices, are expected to post gains for a second consecutive week, while mixed earnings and interest rate predictions continue to dominate sentiment.

Numerous Fed speakers this week have recognized the significance of controlling inflation by raising interest rates despite the possibility of a recession. Weaker PMI data boosted markets, pushing SPX back above the key 4000 barrier, as it was anticipated that the FOMC meeting minutes will reiterate the need for additional tightening.

A rise in the price might lead to a retest of previous support turned resistance at the May low of 4056.88 as long as price movement remains above the 38.2% Fibonacci retracement of the August-October move at 4006.81.

The US tech 100 is presently challenging trendline resistance at 11860 as the Nasdaq 100 climbs above 11700, and the 50% Fibonacci of the 2020–2021 advance continues to provide as immediate support at roughly 11768.

Wall Street: Data from retail traders shows that 23.50 percent of dealers are net long, with a short-to-long ratio of 3.25 to one. The number of traders who are net-long is down 12.09% from yesterday and up 20.45% from the previous week, while the number of traders who are net-short is up 8.42% from yesterday and up 20.04% from the previous week.

We frequently adopt a contrarian stance to the general consensus, and the fact that traders are net-short means Wall Street pricing could increase further.

The confluence of the prevailing opinion and previous developments offers us a strong Wall Street-bullish alternative trading tendency. Traders are more net-short than they were yesterday and last week.

Simple Moving Averages – Daily