Market Highlights
1 - US stock markets take a severe beating. S&P -4.36%, DJ -3.44%, NASDAQ -5.52%
2 - European markets closed mixed. DAX -0.43%, FTSE -0.43%, IBEX +0.40%
3 - Gold continues rally +0.52%, Oil reverses to close higher +4.16%, BTC sharply lower -5.40%
4 - USD strengthens against most majors, with only JPY holding it’s own. EUR -0.14%, GBP -0.18%, AUD -1.09%, CAD +0.33%; JPY the outlier -0.53%
5 - BOE hikes to 4.00%; Governor Bailey says there is a case for another 0.25% hike if war doesn’t end
Daily Price Activity
Insights
USD INDEX The index recovered modestly today with buyers going on to recoup much of yesterday’s losses. Contributing was strong employment data, continued expectations of a December hike, oil rebounding slightly, and re-assessing the shock Democrat results in the mid-terms. Noteworthy that yields lost ground across the board. NFP tomorrow could be telling for future USDX moves. Resistance at 101.58 with support at 101.04
S&P 500 A severe sell-off in the US equity markets. This appears more than merely profit taking following yesterday’s rally. The biggest pressure comes from AI, Technology and Semi-conductor stocks. S&P’s biggest daily decline since April 2025. A major reversal in market sentiment appears to be adding up to more than a natural correction. Resistance at 7737 with support at 7375.
GOLD Gold had another strong session today, following yesterday’s 3.4% rally with another push higher rather than surrendering those gains. This is meaningful from both a technical and fundamental perspective. The metal strengthening in the face of the USDX gains is also relevant. Should the $4000 mark come back into focus (retracement, profit taking), buyers guarding this level will confirm demand and the bullish feel. Resistance at $4147 with support at $4058.
BRENT OIL Another volatile day for oil which saw initial weakness reversed as buyers took control late in the session. Reduced expectations of renewed conflict between US and Iran and the potential easing of supply concerns contributed to early weakness; only until news of attacks on tankers in the straits of Hormuz reminded traders of the far from settled reality - resulting in the sharp reversal. Resistance at $94.18 with support at $93.48.
BITCOIN A significant sell-off saw yesterday’s gains reversed. BTC continues to behave like a risk asset and today’s stock sell-off dragged cryptocurrencies lower. Political uncertainty with the Democrats taking over congress adds uncertainty regarding regulation issues for BTC. Today’s action suggests that buying demand remains fragile, notwithstanding yesterday’s rally. Resistance at $80.8K with support at $75.4K.
FX Pivot Levels
