US Market Review 8th July 2021

by Charalambos Constantinides

BigCommerce Holdings Inc. stock closed at $72.27, about 201 percent above its IPO price, on its first day of trading on August 5th . The price reached an all-timer high of 162.50 by August 27th 2020 and since then it dropped gradually after it registered consecutive lower tops and lower bottoms to an all time low of 42.17 on May 12th 2021. The price since then rallied and crossed above both the 50 and 100 Day Moving averages (MA50/MA100). The MA50 is still below the MA100 sloping slightly upwards and attempting to cross above it, but it is still bearish. The Relative Strength Index is above the mid-level 50 and also crossed above the overbought 70 level sloping upwards, indicating more bullish sentiment. The price on July 7th tested the 161.8% Fibonacci extension level which lies at around the 73.00 area, before closing at 70.00.
For the bulls, important resistance levels exist at 73.00 where the 161.8% Fibonacci extension level resides and is coinciding with the February 2nd 2021 inside resistance bottom, also at 92.00 which is derived from the February 10th top and coincides with 261.8% Fibonacci extension level, and finally at 96.66 derived from the January 27th top.
For the bears, important support levels at 58.30 where the MA 100 lies now, also very near at 57.00 where the MA50 stands now, and finally at 42.17 where the all-time low was registered on May 12th.

The weekly jobless claims figures will be in focus later today. With a more meaningful labor market recovery needed to force the FED into action, expect plenty of interest in today’s figures.
• Major stock markets in the United States posted gains at the closing bell on Wednesday following the release of the FOMC meeting minutes which hinted the Federal Reserve might start easing asset purchases earlier than expected.
The Dow Jones surged 0.30% or 104 points at the close, as Apple climbed 1.80%. The Nasdaq 100 rose 0.16%, with Biogen soaring 3.03%. The S&P 500 gained 0.34%. Oracle was the top performer, advancing 3.59%.

• Federal Reserve officials last month felt substantial further progress on the U.S. economic recovery "was generally seen as not having yet been met," but agreed they should be poised to act if inflation or other risks materialized, according to the minutes of the central bank's June policy meeting.
In minutes that reflected a divided Fed wrestling with new inflation risks but still relatively high unemployment, "various participants" at the June 15-16 meeting felt conditions for reducing the central bank's asset purchases would be "met somewhat earlier than they had anticipated."

• A new rise in coronavirus infections driven by the more virulent Delta variant could cause consumers to "pull back" and slow the U.S. recovery, Atlanta Federal Reserve President Raphael Bostic said, adding trends in some parts of the country were "troubling."
"If we see spikes in infections that will likely mean that people are going to pull back from engaging in the economy and our recovery is going to be a lot smaller," Bostic said at a virtual event hosted by the National Association of Black Journalists’ Business Journalism Task Force.

• Canadian economic activity expanded at a faster pace in June as measures of employment and prices rose, Ivey Purchasing Managers Index (PMI) data showed on Wednesday.The seasonally adjusted PMI rose to 71.9 from 64.7 in May. That was the highest level for the index since March, when it notched a 10-year peak of 72.9.
Important Daily Events:
• At 14:30 (GMT)US Energy Information Administration (EIA) Natural Gas Storage numbers are expected. This indicator is Change in the number of cubic feet of natural gas held in underground storage during the past week.

• At 15:00 (GMT) US Energy Information Administration (EIA) Crude Oil Inventories are also due. This indicator is showing the change in the number of barrels of crude oil held in inventory by commercial firms during the past week.

• At 19:00 (GMT) US Consumer Credit m/m is coming up. This is correlated with consumer spending and confidence - rising debt levels are a sign that lenders feel comfortable issuing loans, and that consumers are confident in their financial position and eager to spend money.

US Indices Yesterday:

• Dow Jones +0.30%
• S&P 500 +0.34%
• Nasdaq +0.01%