The world’s largest central banks will hold a parade of meetings next week to perform the finale of their monetary policy for the year. Results of these meetings are likely to impact markets negatively.. This has already begun to be seen through market movements this week.
The S&P 500 index is losing around 2.6%, sliding to 3977 points. Brent crude is suffering as prices fell by more than 11% this week to $76.3 per barrel. Such a significant drop indicates that the real downside phase of the cyclical crisis is already here. Stock markets will be the next to suffer.
The money market is aggressively moving sideways. Macroeconomic data that came out this week just confirms that the recession is nearing. An expected slowdown of November Producer prices in the United States, that will be released today, may somewhat inspire investors but will not change the general negative sentiment.
The U.S. stock market continues to fall and may finally form a downside formation next week. The nearest resistance for the S&P 500 index is located at 3990-4010 points, while the support is at 3900-3940. Long term targets are deep below at 2000-2200 points.
The oil market seems to be a leading indicator for stocks. Russia has not responded in any way to a price cap on Russia’s oil exports recently introduced by the European Union. So, crude prices continue to fall amid recession fears. The nearest resistance is set at $78-80 per barrel of Brent crude, and the support is at $68-70 per barrel. The primary target is located within the range of $60-70 per barrel.
Gold has almost erased loses this week as prices rose to $1791 per troy ounce. Further developments are very simple. Gold prices may breakthrough $1820-1830 per ounce, flagging an end to the current trend and beginning a long-term upward climb. If the prices fail to do so before the stock market collapse, gold prices may dive below $1700 per ounce.
The money market continues to experience elevated volatility that prevents the use of short-term signals. So, it is better to place orders that are attached to longer perspectives. Short trades for AUDUSD were opened at 0.68000-0.68500, and for EURUSD at 1.05000-1.05500. Downside targets for these trades are at 5000 points below opening prices. The same applies to stop-loss orders that are 5000 points above order prices.