Image source: Rebecca Smith © 123RF.com
Yesterday the Department of Labor reported that another 4.427 million people have filed for unemployment benefits over the last week, which means that since the coronavirus crisis in the US began five weeks ago, more than 26 million workers have been impacted by the fallout and filed for support.
The findings of the labour market report revealed a sizable drop in the number of layoffs. The Department of Labor recorded 5.237 million claims the previous week, which amounts to a gap of more than 800 thousand individuals.
Nevertheless, the final data exceeded the consensus forecasts, which were projecting a lesser jump in the number of people filing for financial support corresponding to 4.350 million.
US Unemployment Claims. Image source: TradingEconomics.com
The US labour market continues to be impeded by the national lockdown, which deters normal economic activity. More and more market analysts are now expecting the brewing recession for Q1 2020 to be more significant compared to the Great Depression of nearly a century ago.
Even still, the stock market continues to be demonstrating resilience to the developing situation. This is due to the massive amounts of liquidity that has been pumped into the economy by the Government since the fallout started affecting it.
The Dow Jones Industrial Average index has been consolidating in a narrow range above the 38.2 per cent Fibonacci Retracement level at 22554.0, ever since its price action broke out above it on the 6th of April.
And while it is yet uncertain whether the stock market rally would continue going further north because of the Government's fiscal package and FED's looser monetary policy, the market is demonstrating signs of stabilisation.
The ADX applied to the DJI's price action shows that the index currently finds itself in a technical range-trading environment, with the ADX threading below 25 points. This underpins the depreciating levels of adverse volatility in the market, as the initial shock from the massive selloff in early March is now mostly subsided.
The apparent stabilisation in the market, however, is not going to be enough for full economic recovery. Judging by the DJI's price action, it appears as though the market has already priced in the deteriorating labour conditions in the US.
A long-term recovery, on the other hand, would necessitate a robust growth in employment.
DJI 1D Price Chart. Image source: Trendsharks ©, created with TradingView.com
Gold is undergoing a correction, as investors take profits to offset losses from falling stock prices, impacting their margins. However, we anticipate a renewed wave of [...]
The Swiss stock market index is mirroring its global counterparts, such as Germany 40 and US100, experiencing a sharp decline following the announcement of new [...]
We’re analyzing the weekly chart to grasp the broader market trend. Over the past three years, the US30 index has surged by 17,000 points, often resembling a nearly straight [...]
Over the past week, the DAX has experienced a sharp decline, plunging by an astonishing 3,400 points. This downward movement is not isolated, as its international counterparts, such as the UK100 and US100, are also facing significant [...]
EURUSD recently formed a double top at 1.0930, signaling a potential trend reversal, and has since begun a correction. After a 600-pip rally since early March, a pullback at this stage is both expected and healthy. Given these conditions, we are placing a [...]
Since early March, EURJPY has surged nearly 1,000 pips, providing us with several excellent trading opportunities. However, as the rally matures, many early buyers are beginning to take profits, leading to a noticeable slowdown in the uptrend. On Friday, the pair formed a [...]
The AUDJPY currency pair continues to be dominated by bullish momentum, as multiple golden cross patterns reaffirm the strength of the ongoing uptrend. Despite this, we are witnessing a much-needed [...]
The EURAUD currency pair appears to be undergoing a trend reversal, signaling a potential shift in market direction. A notable technical development is the formation of a Death Cross on the chart, a widely recognized bearish indicator that typically suggests a [...]
After securing an impressive 200-pip profit last week, the EURJPY currency pair is now undergoing a southward correction, retracing some of its recent gains. Despite this temporary pullback, the Golden Cross remains intact, reinforcing our view that the overall trend continues to be [...]
The appearance of a Golden Cross in Silver strengthens our analysis that the metal is currently in a strong uptrend, indicating further bullish momentum in the market. This technical pattern, where the short-term moving average crosses above the [...]
This trade presents a considerable level of risk and can be classified as an opportunistic move based on recent price action. The GBPUSD currency pair has experienced a substantial bullish rally, surging by nearly 500 pips in a strong upward movement. However, after this extended period of appreciation, the pair is showing signs of a potential [...]
The anticipated Death Cross on the SMI20 appears to be failing as price finds strong support at the 23% Fibonacci retracement level. After testing this area, the index has shown bullish strength, printing several large green candles, signaling an increase in [...]
A Golden Cross has just appeared on the USDJPY chart, signaling a potential bullish move. This technical pattern occurs when the 20 period moving average crosses above the 60 period moving average, a widely recognized indication of increasing [...]
After 2 months of a down trend, we finally see some indications of price recovery for Oil. The golden cross, a historic buy signal, supports this [...]
For the past month, the German DAX40 has experienced a remarkable 10% surge, reflecting strong bullish momentum. Despite ongoing market volatility and frequent pullbacks, every dip continues to attract fresh buyers, reinforcing the [...]
Oil continues its downward trajectory, despite occasional pullbacks. The overall trend remains bearish, reinforced by multiple Death Cross patterns, a classic sell signal indicating further weakness. Adding to this bearish outlook, the critical [...]
Over the past few days, gold has experienced a sharp decline of more than $100. This downturn can be attributed in part to traders securing profits to manage their margins, which are under strain due to the significant drop in major indices. Currently, gold has fallen below the [...]
The NASDAQ 100 index is showing strong bullish momentum, as evidenced by the formation of a Golden Cross on the chart. This classic buy signal occurs when the short moving average crosses above the long term moving average, suggesting that upward momentum is [...]
The EURAUD currency pair has encountered a significant resistance level, failing to break above the critical 61% Fibonacci retracement level. This suggests that bullish momentum is weakening, reinforcing the case for a potential downward move. Given this technical setup, we favor entering a [...]
The UK100 is experiencing a remarkable rally! Over the past few weeks, the British stock market index has surged nearly 800 points. Each minor dip has attracted more buyers, fueling the bullish momentum. However, since last week, we’ve observed a slight [...]
