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Market View

Market Daily Outlook - US stocks, New Highs

Monday, August 31, 2020 1:11 PM GMT

US stocks have verified the V formation and performed even better than expected. August was the best month over 30 years as SP500 is gaining over 7% and NAS100 rising 9%. Worth mentioning that US30 will have major changes today as Salesforce, Amgen, and Honeywell will replace Exxon Mobil, Pfizer, and Raytheon Technologies, as well as a 4-for-1 Apple stock split, will take place. Consequently, Apple will have a smaller weight on US30. 

Indeed EU indices are lagging behind US equities. DAX30 is near all-time highs however FR40 and UK100 remain very weak. Earlier today,  French Foreign Minister Jean-Yves Le Drian blamed the UK for delaying the post-Brexit talks. Italy’s GDP fell by 12.8% in YOY. Similar weak numbers have been announced by Cyprus, Belgium, Iceland, and Slovenia.  

Reviewing the technicals, SP500 tries to validate the 3500 level and remains overbought excessively. NAS100 has the same behavior and is moving above 12000 level. The index is testing the upper side of the rising channel. GER30 still remains bullish though has less bullishness. As long as 5 and 20 EMA hold the buyers have the control. 

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SP500 daily

NAS100 daily

GER30 daily

Heading to the forex market, EURUSD bounced at 20 EMA and remains its positive momentum. Though the Stochastic has started forming negative divergences. USDJPY is ranging from 105.1 to 106.7 and there is no clear bias. USDCHF is still holding above 61.8% Fibonacci retracement level while Stochastics is forming positive divergences.

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EURUSD daily

USDJPY daily

USDCHF daily

Checking the ZuluTrade’s Traders Sentiment, the community is currently bullish on EURUSD, GBPUSD, and USDCAD while bearish on USDJPY and GBPJPY.

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The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.

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