A downward trending market ends periodically lower regardless of interim moves. Securities in any asset class tend to show trending behavior of some kind. Bitcoin surged another 5% to around $47,800 after a big gain Thursday. Marathon Digital (MARA) rallied another 11% after soaring 23% Thursday.

1. Bear in mind that the price has to close within the bands in order to be considered in the sell zone.
2. Welles Wilder, this indicator uses values ranging from to determine if the price is moving strongly in one direction, i.e. trending, or simply ranging.
3. December’s CPI inflation rate was revised to a monthly gain of 0.2% from 0.3%, while December’s core CPI was left unchanged at a 0.3% increase.
4. On the other hand, if the 7 period SMA fans out below the 20 period SMA, and the 20 SMA is below the 65 SMA, then the price is trending down.

One thing you should know about trends is that they are actually quite rare. One tool that is often used for range-bound strategies can also be helpful in trend discovery. If you’re not a fan of the ADX, you can also make use of simple moving averages. Price is clearly trending downwards even though ADX is greater than 25. The S&P 500 and Nasdaq Composite have gained 0.3% and 0.1%, respectively.

December’s CPI inflation rate was revised to a monthly gain of 0.2% from 0.3%, while December’s core CPI was left unchanged at a 0.3% increase. The fourth-quarter core CPI remained unchanged, with a 3.3% annualized increase. On the other hand, if the 7 period SMA fans out below the 20 period SMA, and the 20 SMA is below the 65 SMA, then the price is trending down.

U.S. stocks have just accomplished something that hasn’t happened since 1972

Treasury auctions and the New York Fed’s survey of consumer expectations in the day ahead. Later in the week are the producer-price index (PPI) inflation reading on Wednesday, and U.S. retail sales on Thursday alongside rate decisions in the U.K. Friday ushers in a spate of global purchasing-managers’ indexes (PMIs) and a data dump out of China.

The Forex Market Map provide a quick visual view of how the 30 major forex market rates are performing for the day based on their Percent Change. The Heat Map allows you to scan the cross rates quickly, and click on a cross rate to drill down further. It also is a non-directional indicator, which means it will report a positive figure whether the price trending market is trending up or down. Stocks rose on Friday, with the S&P 500 index closing above 5,000 for the first time amid a rally fueled by better-than-expected earnings reports. “The FTSE 100 is short of Monday motivation, opening lower in early trade, despite indications of a more resilient outlook for the U.K., as concerns about China’s economy linger.

Woodside in talks with Energy Transfer for potential Lake Charles equity stake – Bloomberg

That’s an impressive feat, given that the index is dealing with concerns that high interest rates will ultimately slow down the economy, which would further dent analysts’ corporate earnings estimates. UiPath (PATH) was a strong gainer in the MarketSmith Growth 250 after flashing an early buy signal Thursday. The stock is trying to break out of an eight-week consolidation with a 26.53 buy point.

The Dow Jones Industrial Average gained 157 points, or 0.4%, while the S&P 500 gained 0.4%, and the Nasdaq Composite advanced 0.2%. Gordon Scott has been an active investor and technical analyst or 20+ years.

Assuming the price of a security is expected to remain within its trended pattern, traders can use resistance and support lines to indicate buy and sell signals. Thus, when a price reaches a resistance line, traders can be expected to initiate sell orders to benefit from a potential reversal to a bearish trend. Adversely, when a price reaches support lines, buy orders would typically be initiated to profit from a potential reversal to a bullish trend. Technical analysts believe that trending markets occur with some degree of regularity and predictability. The ability to correctly discern these trends can have a substantial impact on investment returns.

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We’re also a community of traders that support each other on our daily trading journey. The buy zone is the area between the two top bands of the 1SD and 2SD bands. Like the sell zone, the price has to close within the two bands in order to be considered in the buy zone. The sell zone is the area between the two bottom bands of the standard deviation 1 (1SD) and standard deviation 2 (2SD) bands. Bear in mind that the price has to close within the bands in order to be considered in the sell zone. Futures for the Dow Jones Industrial Average gained less than 10 points, or less than 0.1%, after the index rallied 130 points on Friday to finish at 36,247.

The indexes have notched impressive gains for the year, with the S&P 500 up more than 20%. Big Tech took the lead early in the year, as tech company earnings growth prospects have gotten even brighter on the back of opportunities related to artificial intelligence. Underpinning gains in the past few months is the bet that the Federal Reserve will start lowering interest rates later this year now that inflation has shown signs of slowing. The gains in the S&P 500 have continued even after the Fed signaled that it wouldn’t move as quickly as investors had initially hoped. The Russell 2000, an index that measures smaller companies more closely tied to the health of the economy, rose 1.5 percent on Friday but remained roughly flat for the year.

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These trending market lines can serve as an overlay to a security price chart which can help to form an additional indicator for market trends. Recently, non-tech stocks have taken the lead, as the economic outlook calls for more growth. Slowing inflation could eventually lead to potential cuts to short-term interest rates by the Federal Reserve, leading to more growth on the way. This comes after a Friday rally, a continuation of what has a been a 20% gain for the S&P 500 this year. Big Tech has carried much of the load, as artificial intelligence brings about product enhancements and additional revenue opportunities.

After briefly touching the 5,000 level Thursday, the S&P 500 rose above the key level again, up 0.4%. Top gainers in the S&P 500 included Applied Materials (AMAT), up more than 5% ahead of next week’s earnings report. Meta gained over 20 percent last week, adding hundreds of billions https://1investing.in/ of dollars to its market capitalization, after the company reported that its profits had tripled in the last quarter. For the moment, they’re passing the baton to non-tech stocks, which are benefiting from the market’s expectation that the economy will hold up well enough.

European Stocks Mixed Ahead of Bumper Central Bank Week

Riot Platforms (RIOT) gapped above its 50-day line and rose 13%. MicroStrategy (MSTR) — which currently owns 190,000 bitcoins at an average cost of $31,224 — tacked on 12% and is also up more than 28% so far this week. The Russell 2000 small-cap index jumped 1% after a nice bounce off the 50-day moving average Thursday. The Forex Market Map is updated every 10 minutes throughout the trading day. Forex prices are delayed 10 minutes, per exchange rules, and trade times are listed in CT.

Energy giants have climbed on a recovery in oil prices, but mining giants are on the backfoot amid concerns about demand,” said Susannah Streeter, an analyst at broker Hargreaves Lansdown. More immediately London stocks were being dragged down by energy companies, which are heavily weighted in the benchmark FTSE 100. Much of that came amid continued signs of economic weakness in China, a major consumer of global commodities, with Chinese deflation accelerating by the most in three years. Indeed, Tuesday brings both the consumer-price index (CPI) for November, a critical reading of inflation, as well as the start of the Fed’s two-day Federal Open Market Committee meeting. The FOMC’s decision on interest rates will culminate with a press conference from Fed Chairman Jerome Powell on Wednesday.

The stock market is trying to push higher, even in the face of gently rising Treasury yields. The Dow Jones Industrial Average is up 107 points, or 0.3%, while the S&P 500 has gained 0.3%, and the tech-heavy Nasdaq Composite is up 0.1%. Pinterest (PINS) and Expedia (EXPE) also fell sharply on disappointing results. Top gainers in the Nasdaq 100 included software firms MongoDB (MDB) and Lam Research (LRCX) with gains of more than 4% each. Price will close within this area if the price is really in “No-Man’s Land”.

Worries over a slowdown in the world’s second-largest economy have rattled global markets in recent months, and the latest Chinese inflation data have done little to improve the mood. One caveat for standard trading channels is that they do not fully encompass price movement through reversals and changing trends over time. Cloudflare (NET) was a big earnings winner in the stock market today, up more than 30%. The company delivered another quarter of triple-digit earnings growth, with adjusted profit more than doubling to 15 cents a share. Cloudflare provides products that speed up and provide security for web applications routed through its global network. The S&P 500 and Nasdaq composite were in rally mode again in afternoon trading in the stock market today.

The tech-heavy Nasdaq Composite also rose, 1.25 percent, on Friday. Fed-fund futures indicate that investors have dialed down expectations of a first interest rate cut in March and now price it at about 50% odds for May, according to the CME’s FedWatch tool. The good news for the stock market is that yields remain below recent peaks. If they continue to remain below those peaks, markets will have confidence that the Federal Reserve is indeed finished lifting short-term rates in its battle to cool inflation. A price series that continually closes either higher or lower (on average over a defined number of periods) is said to be trending. An upward trending market is one that may fluctuate up and down but on average tends to close periodically higher.