The USD has moved sharply lower. Stocks are sharply higher. Yields are lower after the US CPI data.
Premarket levels for US stocks:
- Dow industrial average up 842 points
- S&P index up 111 points
- NASDAQ index up 400 points
in the US debt market
- 2 year yield down 22 basis points
- 5 year yield down 23 basis points
- 10 year yield down 20 basis points
- 30 year yield down 11 basis points
Gold is up $25 at $1732 and above its 100 day moving average at $1714.
In the forex market:
- EURUSD and move back above its 100 day moving average at 1.00323 and is testing the high prices from October 27 and November 8 and 1.00957. The high price just reached 1.0104. A swing high at 1.0121 is the next target to get to and through. Move above and the next target area is up 1.0185 to 1.0201.
- USDJPY. The USDJPY fell below the swing area between 145.087 and 145.482 andthe 61.8% retracement at 144.763. The price is looking to test the October low of 143.521. The current price is trading at 143.75. A move below that low would open the door more to the downside as the next target is reached and breached.
- GBPUSD: The GBPUSD is above the downward sloping trend line and other swing areas. The high from a few weeks ago comes in at 1.16355. The 100 day moving averages at 1.16607. A break above the 100 day moving average would be the 1st since March 24, 2022. Key level.
For the S&P, the key level on the topside comes in at 3900. That is home to the 100 day MA. The price closed at 3748.56. The premarket implies a gain of 113 points. Back of the envelope has the price up to 3861 within 39 pips of that key MA level. Be aware.
The major mega cap FAANG stocks (which are not so mega cap) are all higher: