CAC drops 0.54% on day with no major news events. The market is in anticipation of the Fed minutes, which will be released tomorrow.

Also creating great expectations are Nvidia’s earnings call, in fact the NASDAQ posted a new all-time high yesterday and closed in the green. Whereas the DOW, which also posted in a new ATH, closed in the red.

It seems that if the earnings report is not exceptionally better than expected we may see some disappointment, and a temporary selloff. While an even slightly better than expected report would certainly lead to the old adage: buy on rumor sell on fact.

Today’s largest gainers:

• Dassault 24%
• Teleperformance 68%
• Capgemini 62%

Today’s largest losers:

• BNP Paribas        -7.24%
• Société Générale -1.76%
• Thales -1.63%

Technical View

The daily chart below for the CAC shows a bullish trend that has met firm resistance at the all-time high of 8257 (red line). The market has attempted to break past this level on three occasions.

The first two attempts created a double top in April (letter A), which gave rise to a correction of 4.90%. The third attempt was on May 15 (letter B), which gave rise to a Doji star and the formation of a typical reversal pattern.

We now have a conundrum of sorts, the market has created a double top, point A and B. However, the Ichimoku system is still in bullish mode, and the market is supported by the cloud. So, the matter here is whether there is enough bullish momentum to get the market to close higher than the ATH.

Or if the extended double top formation will lead to a large correction, of the kind we experienced in April.

ABOUT THE AUTHOR See More

Gino Bruno D'Alessio

Gino D’Alessio is a professional Forex trader with 20+ years of experience in the financial markets as a broker-dealer. Having worked in New York and London, Gino is regularly featured on Seeking Alpha. He completed the CAIA program in 2015, which also gave great insight into global macro factors. His main focus is FX majors, indices and commodities.

Related Articles

Stock Markets Split as Dow Jones (DJIA) Hit by HealthCare Shock, NASDAQ Surges

11 hours ago

Save

Dow Jones Resumes Bull Trend: DJIA Surges on US-China Trade Progress

1 day ago

Save

DAX Hits New All-Time High after US-China Trade Deal Promise

2 days ago

Save

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up comments new replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments