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Forex Today: S&P 500 Index Trades at Record High

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

The bullish environment continues for global equities, led higher by the US stock market, especially AI technology, which saw the S&P 500 Index trade at a new all-time high late yesterday.

  1. Stock markets are generally bullish globally, with the USA's market performing well, led higher by the election of President Trump who traditionally makes boosting the stock market one of his top policies. The S&P 500 Index reached a new record high at 6,100 yesterday but fell back a bit at the end of the session and failed to make a close at a record high. Trend traders will probably be waiting for a daily close above 6,090 before entering any new long trades here.
  2. In the Forex market, trading has been quiet over the past day, with little directional price movement. Trend traders will remain interested in being short of the EUR/USD currency pair although a daily close today above $1.0430 would invalidate that trend.
  3. Several commodities remain within bullish trends, even if they are not breaking to new highs, notably Natural Gas futures and Corn futures.
  4. The Bank of Japan is strongly expected to hike its interest rate by 0.25% on Friday to 0.50%, which would be the highest Japanese interest rate since 2008. If the Bank unexpectedly passes on the rate hike, the USD/JPY currency pair can be expected to jump strongly.
  5. The Trump and Melania meme coins released earlier this week to coincide with yesterday's inauguration of President Trump are looking bearish, especially Melania.

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Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

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