Key points:
The CNN Money Fear and Greed Index reflected a shift in market sentiment on Tuesday, dropping to 69.1 from a previous reading of 73.5. This shift suggests traders are showing increased caution, though the index remained in the “Greed” zone.
It highlights how rising tensions in the Middle East and market data are weighing on overall confidence.
U.S. stocks experienced broad declines, with the Dow Jones closing 173 points lower at 42, 022.30. S&P 500 followed suit, dropping 0.93% to 5,708.75, while the tech-heavy Nasdaq Composite took a harder hit, falling by 1.53% to 17,910.36.
These movements underscore the influence the Iran-Israel war. Traders appear more inclined to adopt defensive positions, shifting away from riskier assets.
Related content: Asia Stocks Drop as Iran-Israel Tensions Rise, Crude Oil Surges on Supply Risks
Picture: DJ30 shows bearish momentum with resistance at 42392 and key support at 41967, signalling potential further downside, as seen on the VT Markets app.
Based on the downward slope of the moving averages and bearish MACD crossover, we see a strong suggestion of building selling pressure.
With price trading below the moving averages, expect continued downside unless support at 41,967.45 holds. The volatility around 42,392.45 resistance could offer short-selling opportunities if a rally fails to break above this level, while a break could signal a trend reversal.
Most major tech stocks struggled on Tuesday. Tesla, Nvidia, and Apple closed lower, reflecting broader market weakness in the technology sector. Tech stocks have generally been sensitive to shifts in market sentiment, and their downward performance could persist if uncertainty lingers.
As traders look forward, attention turns to upcoming earnings reports from Conagra Brands, RPM International, and Levi Strauss. These earnings will provide insight into consumer and industrial demand, potentially offering more direction for the market.
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