The US market ended last week with a wave of growth and showed new all-time highs – on the Dow and S & P500, technologies also rose, but look weaker – one of the signs of the latest phase of growth, when leaders are lagging behind.
Dow + 0.7% on Friday; S & P + 0.7%; NASDDAQ + 0.9%
The US market has grown steadily, despite the frankly weak employment report for April +260 K new jobs with forecasts above +800 K. the pressure of inflation. The inflation report will be released on Wednesday – and the market may react strongly in case of high values.
The US dollar, on the other hand, fell sharply on Friday on a weak employment report, the EURUSD rate rose by 100 points over Friday – the euro has not seen such strong movements in many months.
The US market today will receive reports from the largest vaccine manufacturers from covid: BioNTech and Novavax. Commodity companies are likely to be strong today – on the rise in oil + 0.5% and the rise in iron ore + 10% in the morning, this will support the Dow.
Covid in the world: The third wave is retreating in the world, in India the situation remains dire, +366 K new cases yesterday, but in the rest of the world only +300 K new cases. Reduction of new cases in the United States, to +22 K, in France and Germany to + 9K – however, there is an effect of a decline in diseases at the weekend – let’s see the data for the following days.
S & P500 4230. Range 4190-4250. A strong rollback is very likely, at least for a technical relief after a strong growth. Shopping is extremely risky.
USDX 90.20. The dollar index fell sharply on Friday. The range is 98.80–90.50.
USDCAD 1.2110. The Canadian dollar strengthened again on Friday, continuing the downward trend at the dollar / Canadian rate – both on the fall of the dollar and on high oil prices. It is too late to sell, but too early to buy – you need to see a strong rebound of the pair up first. The range is 1.2060–1.2170.
Conclusion: The market is awaiting news – in particular, the US inflation report on Wednesday 12 May.