01.10.2021: US stocks again trading in red (S&P500, DXY, USD/CAD, BTC/USD)

The US stock market closed the first autumn month with losses. On Thursday, the key stock indices incurred equally sharp intraday losses as it was two week ago, on September 17. As a result, the two days of massive selling erased all gains, so the market closed in the red. September has been the first month of the market’s decline since January 2021. What consequences may this entail? Let’s try to figure out!
On Thursday, the S&P 500 sank 1.2%. On Friday morning, its futures are again trading lower. Actually, the S&P 500 closed a month with losses for the first time since January. The monthly loss measures just 4% but market participants understand that a panic is sweeping over Wall Street.
Meanwhile, the index is trading at near 4,314. The expected corridor is between 4,270 and 4,340.
Remarkably, despite a steep fall of stocks on Thursday and Friday, investors are not rushing to enter the market with long positions. By the way, the S&P 500 closed at an intraday low yesterday. Since then, the index has not rebounded yet, so the current price is the most attractive since late June. Experts say that a decline of US stocks is unfolding against the background of the confident economic growth in the US. It means that we might see a sharp bounce in the coming days.
The US dollar is trading steadily at near its highest levels of the year. The greenback has been unaffected even by a seesaw in the stock market. Today it began a retracement as expected. How long will it last? Not long, for sure. Apparently, the retracement comes due to investors’ fears and massive selling on the stock market today.
Now the US dollar index is trading at 94. The currency seems to be poised for further growth. So, analysts foresee the corridor between 94.00 and 94.50 for the index, albeit after a brief pause.
Новое значительное падение рынка акций США и безумие с ценами на рынке газа в Another fall in the stock market and crazy gas prices in Europe ensure the steady bullish trend for oil prices. Notably, they are now growing at a faster pace than the US dollar. The USD/CAD pair lost bullish momentum as expected and got stuck in a trading range of 1.2600 to 1.2780. Currently, the pair is trading at near 1.2710.
The crypto market is thriving again. In the afternoon, Bitcoin spiked to 47,500 dollars from 44,000 amid some fundamental factors. What exactly? Yesterday, Jerome Powell said the Federal Reserve is not going to ban cryptocurrencies, though stablecoins should be subject to regulations. Besides, Iran lifted its ban on crypto mining. These two events propelled Bitcoin to higher resistance of 48,000. The digital token has not been able to overcome it. If the price does not break this level, the crypto will have to make a minor technical correction.
To sum up, the early autumn has already depreciated the harvest raised by the market for two last months. Current sell-offs on Wall Street are a common correction. Importantly, dynamics of US stock indices mirror economic conditions in the US. As we said earlier, amid the confident economic growth the stock market is not able to gain the bearish momentum. Meanwhile, large investors are locking in profits during the ongoing correctional decline.

00:00 How the first month of autumn ended
00:34 S&P500
01:48 DXY
02:33 USD/CAD
03:00 Bitcoin
03:42 Resume

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