US markets acted very weak yesterday. The NASDAQ dropped 1.4% while the S&P and Dow fell 0.9% and 0.8%, respectively.
Asia has taken a large dive with the Nikkei dropped down 2.93% as the stronger Japanese yen weighed on manufacturers. Usually, when there are fears around the world, investors are searching for a safe haven and the Japanese yen with gold are two of them.
Social media stocks saw extreme weakness as Twitter's (TWTR) IPO lock-up expired, spilling over into the rest of the social media sector. Facebook (FB) fell 4.39%.
Banks also continue to look very weak as Bank of America (BAC) broke lower out of a lower level consolidation. The stock gaped down on its earnings. Now we have point of reference at $14.71, if it will go through previous low of the day, I will be considering a Put option. Resistance at $14.86 then $15.00, if price will pull back to that area I expect to see some selling. Overall, financial sector shows relative weakness vs broad market and with futures down we can see some continuation move down in this sector.
Apple (AAPL) was down yesterday 1%. In the morning it went through previous high of the day and gave another $3 up move but reversed and get back below our pivot point at $601, with engulfing bear move right to $597.29. I started to trade it for a Put on retest of failure point at $601 and when it confirmed resistance there from another side it built some consolidation support at $599.70-ish.
On the chart I mapped out selling and buying opportunities.
USD/CAD broke down bear flag with powerful move down. And now we approached to previous support zone at $1.08570-1.08666. My plan is to sell pullbacks from that move with resistance levels at $1.08962 then I will use my Fibonacci levels as selling zone. As it becomes difficult to sell here so close to support, as it seems a bit extended. The lower it will hold, the higher probability it will continue lower.
On Friday when US job report was released it accelerated to a downside with a quick reversal. Regained some levels of support and built nice upper-level base in front of resistance. Yesterday EUR/USD broke up consolidation and pushed into March resistance zone. So, I’m watching for selling opportunities close to it. In the morning it broke down 1.39200ish support and confirmed selling idea. Next buy-area area is at $1.39000 then $1.38870.EUR/USD is on the Daily chart in an uptrend since July 2013. After big, ignited, red candle on 20th of March it entered into range-bound market and bounced up well off major trend line. Till now it built series of lower high and higher lows (wedge) and gave opportunities to trade both sides (selling from wedge highs and buying support).