US stocks pulled back slightly on Tuesday after the Dow reached a record high on Monday. The Dow fell 0.2%, while the S&P 500 and Nasdaq both dropped around 0.2% and 0.3% respectively. Investors are cautious as they await Nvidia’s earnings report on Wednesday, which could have a significant impact on tech stocks. Concerns also remain about the upcoming inflation data that could influence whether the Federal Reserve will cut interest rates in September. In corporate news, Apple’s CFO transition and a potential Paramount takeover are also in focus.
US100 – H4 Timeframe
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US100 on the 4-hour timeframe as seen, earlier broke below the previous low, creating an impulse move that was the basis for the plotting of the Fibonacci retracement. As usual, the 76% and 88% serve as critical levels to watch for a price reversal. The highlighted supply zone is the point-of-interest to watch out for the lower timeframe change-of-character.
Analyst’s Expectations:
Direction: Bearish
Target: 18065.75
Invalidation: 20900
US500 – H4 Timeframe
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On the 4-hour timeframe of US500, we see price currently trading near the supply zone, and resting on the trendline support. In line with the expectations of a reversal, it is pertinent to wait and watch out for a lower timeframe confirmation of the reversal; based on the break and retest of the said trendline. The initial target is the 200-period moving average.
Analyst’s Expectations:
Direction: Bearish
Target: 5372.40
Invalidation: 5689.60
CONCLUSION
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