US Market Review 10th May 2021

by Elina Nikolova

Nasdaq failed to reach record highs unlike the S&P and the DOW. This happened even when growth stocks such as Microsoft Corp (NASDAQ:MSFT) and Apple Inc (NASDAQ:AAPL) rose by 1.1% and 0.5%, respectively on Friday. The ROC (Rate of Change) indicator presents a negative situation as it is trending below the zero line. The price is trading above the trendline formed from the March 5th bottom but below the important inside resistance level at 13701.50.
A break above the 13701.50 level may signal a new rally. Important resistances still stand at Fibonacci 0.618 resistance at price 13799 and the all time high 14059.50 price. A break below the trendline level may signal a further sell-off. Important support lines at 13289, 12627 and 12199.50 price levels derived from previous daily bottoms and inside support levels.

• The US markets will be quiet in terms of news announcements today. The dollar seems to be continuing its weakness after falling to a two-month low following Friday’s disappointing U.S. jobs report.

• Friday’s U.S. employment report for April was well below expectations. Non-farm payrolls only rose by 266,000 during the month, despite robust payrolls data from the ADP and weekly initial claims numbers that lifted expectations to a one million-plus rise.

• According to a morning report on “fxstreet.com” Elon Musk caused Dogecoin to tumble. He said on a Saturday live entertainment tv program that the digital asset is "a hustle." Ethereum stood out with a surge to all-time highs above $4,000. Bitcoin was hovering around $59,000.

• Oil and gasoline futures extended gains after a cyber-attack shut down a U.S. pipeline operator that provides nearly half of the U.S. east coast's fuel supply.

• On Friday the Dow Jones Industrial Average and the S&P 500 rose to record closing highs. This came after disappointing data on the U.S. jobs market and eased concerns about a spike in consumer prices.

US Indices yesterday:

• Dow Jones +0.66%
• S&P 500 +0.74%
• Nasdaq +0.88%