Crypto Update: Coins Extend Weekly Losses as Altcoins Still Glued to Support Levels

Fibo Quantum

Tuesday Market Snapshot

Asset Current Value Daily Change
S&P 500 2,713 -1.59%
DAX 30 11,282 -2.06%
WTI Crude Oil 67.72 -2.11%
GOLD 1,241 1.38%
Bitcoin 6,393 -0.20%
EUR/USD 1.1469 0.05%

The major global stock indices are all significantly lower today just after the US open, with several European benchmarks hitting new multi-month and multi-year lows after the recent bounce. Chinese stocks turned south after the strongest two-day rally in years, and although the local markets remain above their recent bear market lows, the shift weighed heavily on sentiment across the globe, with the Nikkei also getting below last week’s minimum level.

DAX 30 Index CFD, 4-Hour Chart Analysis

In Europe, the DAX is the weakest major index again, and German stocks confirmed the long-term breakdown that we have been following in recent weeks. Today, chemical giant Bayer is pushing the benchmark lower, but the weakness in auto-makers also continues to drag equities lower together with the struggling financial sector.

Spreads between Italian and core Eurozone government bonds are still wide, as the budget debate continues to pressure Italian assets, and despite the relative stability of the Euro, European equities are in deep trouble.

2 EURUSD 1023 - Crypto Update: Coins Extend Weekly Losses as Altcoins Still Glued to Support LevelsEUR/USD, 4-Hour Chart Analysis

The Euro is hanging on a thread above its monthly lows against the US Dollar, while the broader Dollar index hit a marginal new 2-month high today. All eyes are on the European Central Bank and Italy this week, and with the US midterms approaching, things can get wild in currencies in the coming days, especially given the rising volatility in equities, and the general risk-off shift.

While the EUR/USD pair is trading below the 1.15 level, the Dollar failed to show momentum against the common currency with buyers consistently stepping in near 1.1440. That said, the broader downtrend is clearly intact, and a test of the support zone near 1.13 still seems like the most likely scenario in the coming weeks.

S&P 500 Hits New Correction Lows as VIX Eyes 25 Level

3 ES 1023 - Crypto Update: Coins Extend Weekly Losses as Altcoins Still Glued to Support LevelsS&P 500 Futures, 4-Hour Chart Analysis

US index futures had an ugly overnight session before the pre-market earnings dump, with the Asian selloff dragging the major indices lower. While the Nasdaq is holding up above its recent lows, the Dow and the S&P 500 plunged well below their multi-month lows, and the small-cap Russell 2000 also opened deep in the red, below its correction low as well.

Short-term technicals continue to scream sell in the US, with the weak bounce clearing the bulk of the oversold momentum readings with regards to the key benchmarks, and with market internals still being very negative. For now, we would still not buy the dip here, especially as we see no major positive divergences in global markets either.

4 VIX 1023 - Crypto Update: Coins Extend Weekly Losses as Altcoins Still Glued to Support LevelsVIX (US Volatility Index), 4-Hour Chart Analysis

Looking at the Volatility Index (VIX), the regime change that we were speculation on at the start of the correction seems to be confirmed, with the VIX getting back very easily above the line-in-the-sand 20 level. The index neared the 25 level pre-market, and although the panicky 30 level is still well above the current zone, a concerted move below the lows could spark a renewed surge in the VIX as early as today.

This leaves a protracted correction as the best-case scenario for US stocks, but as usual with bearish trends, violent counter-trend rallies are expected along the way, punishing late shorts and resetting the negative sentiment.

ChartBook

Major Stock Indices

5 NQ 1023 - Crypto Update: Coins Extend Weekly Losses as Altcoins Still Glued to Support Levels

Nasdaq 100 Futures, 4-Hour Chart Analysis

6 YM 1023 - Crypto Update: Coins Extend Weekly Losses as Altcoins Still Glued to Support Levels

Dow 30 Futures, 4-Hour Chart Analysis

7 UKX 1023 - Crypto Update: Coins Extend Weekly Losses as Altcoins Still Glued to Support Levels

FTSE 100 Index CFD, 4-Hour Chart Analysis

8 EU50 1023 - Crypto Update: Coins Extend Weekly Losses as Altcoins Still Glued to Support Levels

EuroStoxx50 Index CFD, 4-Hour Chart Analysis

9 NY 1023 - Crypto Update: Coins Extend Weekly Losses as Altcoins Still Glued to Support Levels

Nikkei 225 Futures, 4-Hour Chart Analysis

10 SHCOMP 1023 - Crypto Update: Coins Extend Weekly Losses as Altcoins Still Glued to Support Levels

Shanghai Composite Index CFD, 4-Hour Chart Analysis

11 EEM 1023 - Crypto Update: Coins Extend Weekly Losses as Altcoins Still Glued to Support Levels

EEM (Emerging Markets ETF), 4-Hour Chart Analysis

Forex

12 USDJPY 1023 - Crypto Update: Coins Extend Weekly Losses as Altcoins Still Glued to Support Levels

USD/JPY, 4-Hour Chart Analysis

13 GBPUSD 1023 - Crypto Update: Coins Extend Weekly Losses as Altcoins Still Glued to Support Levels

GBP/USD, 4-Hour Chart Analysis

14 EURGBP 1023 - Crypto Update: Coins Extend Weekly Losses as Altcoins Still Glued to Support Levels

EUR/GBP, 4-Hour Chart Analysis

15 AUDUSD 1023 - Crypto Update: Coins Extend Weekly Losses as Altcoins Still Glued to Support Levels

AUD/USD, 4-Hour Chart Analysis

Commodities

16 CL 1023 - Crypto Update: Coins Extend Weekly Losses as Altcoins Still Glued to Support Levels

WTI Crude Oil, 4-Hour Chart Analysis

17 GC 1023 - Crypto Update: Coins Extend Weekly Losses as Altcoins Still Glued to Support Levels

Gold Futures, 4-Hour Chart Analysis

18 HG 1023 - Crypto Update: Coins Extend Weekly Losses as Altcoins Still Glued to Support LevelsCopper Futures, 4-Hour Chart Analysis

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