Macro update
US equities pull back:
The S&P 500 slipped 0.4%, the Nasdaq 100 dropped 0.7%, and the Dow Jones edged down 0.2% as investors took profits following a seven-day rally, amid rising economic uncertainty.
Data blackout heightens caution:
With the US government shutdown stretching into its seventh day, traders turned to private surveys indicating weaker consumer sentiment and higher inflation expectations.
Fed adopts a dovish tone:
Federal Reserve (Fed) Governor Stephen Miran reiterated support for further rate cuts, cautioning that monetary policy may remain too restrictive as growth momentum slows.
Gold hits record, Asia softens:
Gold surged above $4,000.00 an ounce to an all-time high as political tensions in France and Japan spurred safe-haven demand. Asian equities and the euro weakened amid the risk-off sentiment.
Nasdaq 100 comes off record high
The Nasdaq 100 has come off its latest 25,062 record high and tested its September peak at 24,781 which acted as support.
The September-to-October uptrend line, which can be seen at a similar level, may soon be slipped through, as well as the 3 October low at 24,714 since the latest record high has been accompanied by negative divergence on the daily Relative Strength Index (RSI). If so, a break out of a wedge formation may swiftly take the Nasdaq 100 lower, toward the late September low at 24,187 at the very least.
Were the index to remain above its uptrend line, though, and rise above this week’s all-time high at 26,062, the 25,100 region would be next in line.
