14.04.2021: Correction looming over US stock market. When exactly? (DJIA, DXY, USD/CAD, BTC/USD)

On Tuesday, the US stock market caught the second wind. The S&P500 hit a fresh high. The Nasdaq was trading with an equally strong dynamic, having gained 1%. Meanwhile, the US dollar is nursing losses near a one-month low.
Not all US key stock indices developed a rapid rally yesterday. The Dow Jones was the worst-performer with a 0.2% dip. Curiously, some analysts found it appropriate to term the high-tech stocks risk-protective assets. This conclusion sounds at least strange.
The fact of the Dow Jones’ decline yesterday indicates growing appetite for risk among investors. Once the market enters a correction stage, the Dow Jones will look stronger because the high-tech stocks will decline at a faster pace. Meanwhile, the Dow Jones is expected to trade in the corridor of 33,300 to 33,900 points.
The US dollar index failed to sustain above strong support at 92.00 points yesterday. This happened when the euro broke above the level of 1.1930. Such a dynamic of the US currency suggests that the greenback’s downward correction could more lengthy and deeper even despite soaring yields of US Treasuries (almost 1.7%).
Today, the US dollar index is trading at near 91.70. It is likely to hold in a narrow range of 91.20 to 92.00. One of the bearish factors for the US dollar is the news that Johnson&Johnson vaccine has been withdrawn after reports on blood clotting.
At the same time, the Canadian dollar is taking advantage of the greenback’s weakness. Rising oil prices are also pushing the loonie up. However, the downward move of the USD/CAD pair is facing strong resistance. The overvalued loonie is negative for Canada’s economy which is reliant on commodity exports to the key trade partner, the US.
Today the USD/CAD pair is trading lower at near 1.2540.
Bitcoin amazed crypto investors with a fresh high. In the second half of the day, it is trading at about 64,250 dollars per token that comes as no surprise. The consolidation stage is over. Analysts share the bullish forecast for the most popular cryptocurrency, taking into account both the news background and technical analysis. The next resistance zone is seen at 68,000 – 70,000 dollars. Interestingly, many altcoins have surged by 10% to 70% over the recent days. This also confirms the overall rally in the crypto market.
The US stock market conquered another peak in line with expectations. However, amid such a robust rally in the latest two week, the market will hardly be able to maintain such elevated levels for long. So, investors are already pricing in the correction which is looming in the not too distant future. The economic calendar reminds us of important economic data tonight.
The Federal Reserve is due to release the Beige Book that will shed light on current economic conditions. The survey comprises reports from 13 district banks.

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