Indices keep pushing higher

Indices keep pushing higher
Wednesday brought us the dovish FED and the initial reaction. Thursday verified the first movements and showed if they can be sustainable in the mid-term. Upswing on stocks and indices seems legitimate but the weakening of the USD does not.
Indices are definitely starting February in a great mood. SP500 rose 1.5% yesterday, while Nasdaq climbed more than 3.2%! European indices were not far behind with the DAX rising 2.1% and French CAC adding another 1.2%. Looks like the mid-term direction is set and it’s a bullish one. With all that, Friday starts bearish. Commonly, the last day of the week brings us a correction of the moves that happened earlier. The small correction would not change the positive sentiment in this sector and actually, the chances for the correction happening today is quite significant. Especially since the market has another influential data being published today and it is NFP!

NFP today is expected to come at 193K, which would be a decline from the 223K reported previously. The unemployment rate in the US is about to rise from 3.5% to 3.6%. One and a half hours later after the NFP, we will also get the ISM Services PMI data, which is expected to come at 50.5, which would be a rise from the previously reported 49.6.

As mentioned previously, Dollar recovered from Wednesday’s losses, when it was the weakest currency in the pack. On many instruments, it is happening on key resistances, which may be an additional bearish factor strengthening a bearish correction scenario. This case is happening for example on the AUDUSD and GBPUSD.

Thursday was pretty bad for the commodities. Gold made a huge reversal, which pretty much canceled the positive reaction from Wednesday. Oil kept sliding, securing the second bearish day in a row in February. It looks like today can be the third one.

Yesterday, tech giants showed the earnings for the fourth quarter, and let's say that they were not too good. Apple and Alphabet disappointed on both: EPS and Revenue, while Amazon posted a higher-than-expected revenue but very miserable EPS (0.03 vs 0.17). All data was published after the market close, so we are yet about to see the reaction!
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