September Slumps Out of the Gate 04/09/2024

US Pre-Market

Futures: The S&P 500 is down 0.51%, the Dow Jones Industrial Average is down 0.32%, and the Nasdaq 100 is down 0.72%.
Futures are starting lower, and the market is awaiting the JOLTS job openings data to be released today at 10:00 AM EST, which could provide some hope for the bulls or dampen their spirits. From a technical perspective, as highlighted in our newsletter yesterday, the bull flag required a decisive move, and a breakdown occurred. The SPY daily chart broke below the 55 level support, and if this downward trend continues, it could lead to a touch of the 50 EMA and potentially a gap fill.
Watchlist for today: DLTR, HRL, CIEN, INTC, BA, NVDA, MSFT, UBER, META, TSLA

Cryptocurrency Market

Bitcoin's price has fallen 6.5% over the past week, with the downward trend continuing on September 3. This decline is driven by comments from the Bank of Japan and a significant sell-off in the equity markets. Analysts suggest that Bitcoin (BTC) could potentially drop another 15%-20% if a recession accompanies a September rate cut. This scenario could see BTC bottoming out in the $40,000-$50,000 range.
Watchlist: Bitcoin: 56 000-60 050 Ethereum: 2300-2560, Solana: 122 -136.50

 Forex Market

Bank of Japan Governor Kazuo Ueda reiterated on Tuesday that the central bank will raise interest rates if the economy and inflation meet the BOJ’s expectations. His comments, made in a document submitted to a government panel led by outgoing Prime Minister Fumio Kishida, boosted the yen. Following Ueda's remarks, the yen strengthened against the dollar, defying the broader weakening trend among G-10 currencies.
The USD/JPY maintained strong support at the 143.4 level on the daily chart; the next level to break is 145. The next resistance to overcome is 147.
Whatchlits: EUR/USD: 1.1028-1.1.080, USD/JPY: 145 -147

Basic Materials

Oil prices dropped on Tuesday morning amid ongoing speculation that the top eight OPEC+ producers might roll back their voluntary production cuts. Renewed concerns about China's demand also weighed on the market. Additionally, Nigeria and China announced plans to strengthen ties through a new nuclear energy partnership, according to a government spokesperson.
The daily chart of USOIL fell below the $70 mark with a significant red candle, raising whether this round number can support the price or if the decline will persist.
Watchlist: GOLD 2470-2533 Crude Oil: 69.66-71.55

The TEFS Analyst team wishes you a successful day!