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US Market Outlook 30 Oct 2018

Posted by Tim Sholl on 31-Oct-2018 00:10:52

Volatility remains elevated after sharp reversals in US stock indices last night. The US/China trade dispute came back in to focus after Trump talked of placing tariffs on all Chinese imports if they could not negotiate some sort of deal.  

Large cap tech stocks led by Amazon dragged the indices down as the technical picture starts to look worse , with all major markets trading under the long term moving averages and value stocks starting to outperform the growth stocks.

The US dollar continue to lead the way in FX with more trading highs in the index as the EUR and GBP continue recent weakness on growth concerns and lack of Brexit progress. The JPY is also weakening  after a strong reversal. The AUD has performed well over recent weeks with tight range of 0.7020 to 0.7160.

Analysts are calling for a panic selling opening before a signal low is seen.  It looks possible that this volatility may continue for at least a few more weeks until US midterm elections are sorted.

 Daily Chart - US Dollar index futures - DXc1 - Continues to remain strong.ScreenShot3575