Inventory Market Forecast:Inventory Market Forecast for the Week Forward: Reflation Commerce ReignitedThe Dow Jones and S&P
Inventory Market Forecast:
Inventory Market Forecast for the Week Forward: Reflation Commerce Reignited
The Dow Jones and S&P 500 notched modest features Wednesday because the Nasdaq 100 bled barely decrease. Disjointed worth motion in latest classes has sparked a revival in dialogue across the reflation commerce theme which initially gained recognition within the first quarter when giant expertise shares first started to stumble. The reflation commerce theme may be roughly measured via a ratio of the Nasdaq 100 to the Dow Jones.
Nasdaq 100 to Dow Jones Ratio Dives Decrease
The ratio fell to its lowest degree since late March on Tuesday, regardless of modest strikes in US Treasury yields which had been the latest catalyst behind weak point in expertise shares. Worth motion into the second half of the week, whereas tepid up to now, would possibly recommend additional energy for the Dow Jones relative to the Nasdaq 100.
Current modifications in IG shopper sentiment information additionally recommend the Dow could proceed larger within the days forward as brief curiosity spikes alongside dwindling lengthy publicity. Since we usually take a contrarian stance to crowd sentiment, the indicator provides a bullish contrarian bias. Within the meantime, observe @PeterHanksFX on Twitter for updates and evaluation.
–Written by Peter Hanks, Strategist for DailyFX.com
Contact and observe Peter on Twitter @PeterHanksFX
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