It took sharp moves to recover from December lows, mostly due to the markets struggling for the direction this week. Users in the bullish camp, situated on the U.S. earnings season, will find support on their views.
The Dow Jones Industrial Average rose is currently at 171 points from yesterday, driven by surprise positive earnings from United Technologies, IBM, and last but not least, Procter & Gamble.
It doesn’t matter if this trend of positive surprises continues, since many wonders and question themselves about it, but the Tech sector will surely make up more than a quarter of the S&P 500 market cap, dictating the fate of U.S. equities.
Those on the other side will find a lot of news supporting bearish views, like slowing global economic growth or the unresolved U.S. and China trade conflict, even the U.S. government shutdown and Brexit deal will provide a source of information for uncertainty dragging at sentiment.
But at the end, one of both sides will overcome, but at the moment, there isn’t enough momentum to support on either side. This is something that will likely lead markets to continue to be driven by daily news flows until one factor dominates. Until now, it is only expected to see further moves of more than 1% up or down in the coming days.
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