Major indices, AAPL and PLTR: what's next?
With successive rate cuts by major economies, what key factors should investors monitor? AAPL are at pivotal levels — what can be expected? PLTR appears to be in a favorable technical formation — can it maintain its momentum? Let's take a look.
The Bank of Canada and the European Central Bank announced rate cuts on June 5th and 6th respectively, but the US stock indices $Nasdaq Composite Index(.IXIC.US$, $Dow Jones Industrial Average(.DJI.US$ and $S&P 500 Index(.SPX.US$ showed minimal reaction to the European Central Bank's rate cut, likely because the European rate cut was anticipated and the US financial markets may believe that the Federal Reserve operates on its own monetary policy timeline.
On Thursday morning, data from the Department of Labor showed that initial claims for state unemployment benefits rose to a seasonally adjusted 229,000 for the week ended June 1, exceeding market expectations. Also, the number of job openings in April, according to the JOLTs data, was 8.06 million, the lowest level in three years, and the May ADP employment figures were also significantly below market forecasts. These signs of an "economic slowdown" add weight to the argument for a Fed rate cut.
At this moment, the US Non-Farm Payrolls for May (due on June 7th) is particularly crucial. Weaker data could very likely be the last straw leading to a Fed rate cut, which would spur a rise in the stock market, while stronger data could give the Fed a reason to not rush into a rate reduction.
After eight consecutive days of gains, $Apple(AAPL.US$ experienced a slight decline. Currently, the EMA is in a bullish alignment, and the uptrend line has also temporarily formed effective support, indicating that it is still in an uptrend. However, AAPL is advancing towards its ATH position and is facing significant resistance above. On June 5th, it briefly surpassed the resistance level at 195, but lost ground on June 6th. AAPL is now at a critical point for future price direction. If it can break through 195 on Friday or next Monday, the next target to challenge is the ATH at 199. If it fails to break through, it is likely to retreat to the support levels around 192-193 or even 187 for consolidation.
$Palantir(PLTR.US$ is also worth keeping an eye on at the moment. The EMA has gradually formed a bullish alignment, and the MACD has almost simultaneously completed a bullish crossover. Generally, the simultaneous occurrence of these two patterns is likely to bring good returns. Moreover, PLTR is about to close the gap down that occurred after its earnings report and has not encountered significant resistance. So, for now, just pay attention to the resistance levels PLTR faces; one is at 25.5, and then at 27.5. If it can smoothly break through the 25.5 level, then reaching 27.5 may be well within grasp, according to the distribution of holdings.
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TA fan | People overreact all the time and the chart helps us make use of that
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