Dow, Nasdaq, USD Talking Points
- Stocks put in a strong gap-higher to start this week’s trade, further recovering a portion of the September sell-off.
- At this point, both the Dow[1] and Nasdaq[2] have retraced approximately 38.2% of that September sell-off[3], and a busy economic calendar[4] for this week keeps the door open for continued volatility.
- Going along with that change-of-pace in stocks has been a similar theme of pullback/reversal in the US Dollar[5]. USD[6] ran into a huge zone of confluent support to start September and bulls have been at-work since; but can they continue to drive into the Q4 open?
- The analysis in this article heavily utilizes price action and chart patterns[7]. To learn more about price[8] action, check out our DailyFX Education[9] section, where it’s taught amongst a host of other candlestick patterns[10] and formations.
US Stocks Gap-Higher to Start a Big Week
We’re now in the final days of September and Q3 and a number of themes remain of interest. US stocks have spent much of the past six months rallying – until the September open, that is. So far, this month has brought a crude change of pace to US equity markets as both the Dow and the Nasdaq went from setting fresh all-time-highs at the beginning of the month to weeks-long pullbacks that remain in full view ahead of the Q4 open. In the US Dollar – the currency was beset by a bearish trend that had punctuated the backdrop since March; but that too found a bit of relief as a big area of support came into play in the
