S&P 500 Rally was snapped by the drop in tech stocks.

S&P 500 Rally was snapped by the drop in the Tech stocks.

S&P 500 is now snapping the 3-day rally that took place after the market bounced back from its recent low to touch 3887 points and at the time of writing is now trading in negative territory. The market still hopes that the Feds might ease up on the interest rate hike front in its Nov 1-2 policy meeting. There are still 2 fed meetings ahead of us as we move towards the end of the year. The index was dragged down by tech companies: Microsoft and Alphabet as their stocks dropped by 7.7% and 9.1% respectively, after a disappointing result.

US500 Daily Chart Directional bias - 2 Weeks 

Trade Insights – US500 – Chart shows viable short positions below the Pivot at 3818 heading towards the first target of the Key Support Level at 3735 and then the further test of the Support Zone at 3690 to 3660.

Alternatively, possible long positions above the Pivot at 3818 with the target to test the key resistance level at 3885 and then the test of the resistance zone at 3950 to 3980.

US 10-Year Treasury Yield bottoming at 4%

The US 10 Year Treasury yield dropped down to 4% after peaking at a 14-year high of 4.3% that was reached last week. The yield rate dropped on the hopes that the Feds could slow down the pace of Interest rate hikes later this year. Since March this year, the Federal Reserve has already raised its Fed fund futures by 300 basis points, one of the fastest moves in history.

Gold - XAU/USD – Gold heading into a resistance level ahead of the Personal Consumption Expenditure (PCE) Report.  

XAU/USD daily chart

Chart Analysis: Gold prices are trading near the fresh weekly high and have bounced back up from the recent low at $1617. The jump up has seen Gold touching the $1670 Key Resistance Level on the Chart. The US Treasury yields are dropping and have now bottomed near 4% on the hopes that the Feds in it next meeting on Nov 1-2 could slow down the pace of interest rate hikes. The chart shows the gold prices are nearing the 50-Day SMA line near the Resistance Zone on the Chart at $1685 to $1700. Further breakout on the upside above the Key Resistance Level of $1670 could push the gold prices to test the Resistance Zone and the 50-Day SMA line. Gold is still trading far below its 200-day SMA line. The MACD indicator line has now crossed and moved above the signal line, last time that happened was back in September and Gold jumped higher.  

Please check the Chart Trading Insights below

• Resistance Zone: $1685 to $1700
• Key Resistance Level: $1670
• Major Pivot Point: $1660
• Key Support Level: $1643
• Support Zone: $1630 to $1610
• 200 Day SMA – Green Line
• 50 Day SMA – Red Line
• 20 Day SMA – Blue Line

Daily Chart Directional bias - 2 Weeks 

Trade Insights – XAUUSD – Chart shows viable Long Positions above the Major Pivot Point at $1660 heading towards the first target of the Key Resistance Level at $1670. Then after consolidation prices could move higher to the further test the Resistance Zone between $1685 to $1700.

• Possible entry of Long Trades above the Major Pivot at $1660
• Potential First take profit could be at - $1670
• Potential Second take profit could be at - $1685

Alternatively, possible Short positions if Gold drops below the Major Pivot Point at $1660 with the target to test the Key Support Level at $1643 then the test of the Support Zone at $1630 to $1610.

• Possible Entry for Short trades if Gold drops below the Major Pivot Point at $1660
• Potential First take profit could be at - $1643
• Potential Second take profit could be at - $1630
• Potential Third take profit could be at - $1610