{"id":167915,"date":"2020-04-01T10:00:41","date_gmt":"2020-04-01T14:00:41","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=167915"},"modified":"2020-04-01T09:01:24","modified_gmt":"2020-04-01T13:01:24","slug":"weakness-appears-to-be-setting-for-this-weeks-economic-data","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/04\/weakness-appears-to-be-setting-for-this-weeks-economic-data\/","title":{"rendered":"Weakness Appears To Be Setting For This Weeks Economic Data"},"content":{"rendered":"
April 1, 2020<\/div>
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By TheTechnicalTraders<\/u><\/a>\u00a0<\/strong><\/p>\n

– As the world reacts to the global economic slowdown because of the COVID-19 virus event and the massive stimulus programs and central bank efforts to support the global economy, investors still expect weakness in the US and foreign markets.\u00a0 We believe this expected weakness will not subside until news of a proper resolution to this virus event is rooted in the minds of investors and global markets.<\/p>\n

Hong Kong and China are currently concerned about experiencing a \u201cthird wave\u201d of the COVID-19 virus within their society.\u00a0 As the economies open back up to somewhat normal, people are very concerned that a renewed wave of new infections will suddenly appear and potentially result in another shut-down event or infectious cycle?\u00a0 We believe all nations are watching what is happening in Hong Kong and China as they attempt to reopen their economies.<\/p>\n

The rest of the world is still battling the rising infection rates and dealing with the economic shutdowns that have brought the global economy to its knees.\u00a0 Europe, Japan, Canada, and the US are all experiencing vast disruptions to their economies and commodity prices and demand expectations are collapsing as a result.<\/p>\n

Nearly a week ago, we issued a research article that suggested our proprietary Fibonacci Price Modeling tool\u2019s key resistance levels may become a very valid ceiling for any price recovery.\u00a0 It appears this is happening in the markets as the NQ Daily chart, below, shows.<\/p>\n

Before you continue, be sure to\u00a0opt-in to our free market trend signals<\/strong>\u00a0<\/em>
\nbefore closing this page, so you don\u2019t miss our next special report!<\/em><\/p>

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Daily Nasdaq (NQ) Chart<\/h3>\n

The NQ resistance level, near 7880, has acted as a soft ceiling in the NQ over the past 4+ trading days.\u00a0 Today, the NQ briefly rallied above this level, then rotated downward below this level again to confirm this key resistance level.\u00a0 We believe this critical Fibonacci resistance level may continue to act as a price ceiling over the next few trading days and push prices lower as economic news and expectations hit the news this week and next.<\/p>\n

The next downside price target for the NQ is 6565 \u2013 new price lows.<\/p>\n

If you have not seen this important technical analysis on the Nasdaq<\/strong><\/a> which I posted a couple of days ago, be sure to see these charts.<\/em><\/p>\n

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SP500 (ES) Weekly Chart<\/h3>\n

This ES Weekly chart illustrates another key resistance level near 2679.\u00a0 Although the ES price has not rallied up to reach this critical Fibonacci resistance level, we still believe this level is acting as a price ceiling and that the ES will weaken as future expectations are confirmed by earnings data, economic data and other collateral damage to the global economy.<\/p>\n

We are still very early in understanding the total scope of this virus event.\u00a0 The US and other global central banks are attempting to front-run any weakened expectations as a result of this virus event.\u00a0 We continue to believe the extended collateral damage to the consumer, business and other aspects of the economy are yet to come.\u00a0 Most recently, consumer delinquencies have begun to skyrocket and the news is being printed about landlords and renters being unable to satisfy obligations on April 1st<\/sup>.<\/p>\n

This is part of the reason why we believe further caution is warranted at this time in the markets. We issued an Important Trade and Investment Alert<\/strong><\/a> Yesterday.<\/p>\n

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Our research team believes a deeper price low will likely set up over the next 30+ days to establish a true price bottom.\u00a0 As we\u2019ve warned, we believe extended collateral damage to the US and global economy will soon become better understood and the extended shutdown of the US and other economies only manages to complicate any positive expectations for a bottom.<\/p>\n

We believe a deeper price low will set up within the next 30+ days and we urge skilled traders to pay attention to the broader expectations of the markets.\u00a0 Earnings data and other economic data will continue to stream into the news centers over the next 30+ days.\u00a0 Don\u2019t get too aggressive with trying to buy a bottom in the markets just yet.\u00a0 Be patient and wait for the markets to show you when the bottom has really setup.<\/p>\n

As a technical analysis and trader since 1997, I have been through a few bull\/bear market cycles. I believe I have a good pulse on the market and timing key turning points for short-term swing traders.<\/p>\n

I hope you found this informative, and if you would like to get a pre-market video every day before the opening bell, along with my trade alerts visit my\u00a0Active ETF Trading Newsletter<\/strong>. If you are a long-term investor looking for signals when to own equities, bonds, or cash, be sure to look into my\u00a0Long-Term Investing Signals<\/strong><\/a>.<\/p>\n

Ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own during the next financial crisis.<\/p>\n

Chris Vermeulen
\nChief Market Strategist
\nTheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By TheTechnicalTraders\u00a0 – As the world reacts to the global economic slowdown because of the COVID-19 virus event and the massive stimulus programs and central bank efforts to support the global economy, investors still expect weakness in the US and foreign markets.\u00a0 We believe this expected weakness will not subside until news of a proper […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-167915","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/167915","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=167915"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/167915\/revisions"}],"predecessor-version":[{"id":167916,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/167915\/revisions\/167916"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=167915"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=167915"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=167915"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}