Is the S&P500 setting up for a quick pullback before pushing to new highs — or can momentum carry it straight up? 🔗 Source 💡 DMK Insight The S&P 500’s current momentum raises a critical question: are we due for a pullback? Traders should be on high alert as the index approaches key resistance levels. If we see a dip, it could be a classic buy-the-dip opportunity, especially if it holds above recent support. However, if momentum continues unabated, we might see a rapid ascent towards new highs, which could trigger FOMO among retail investors. Keep an eye on the 4,400 level; a break above could signal a strong bullish trend. Conversely, a pullback to around 4,350 could provide a solid entry point for those looking to capitalize on the upward trajectory. Here’s the thing: while many are optimistic, it’s worth questioning whether the current bullish sentiment is sustainable. Economic indicators, like inflation and interest rates, could play a significant role in shaping market behavior. Watch for volatility spikes, as they could indicate shifts in trader sentiment. Overall, the next few trading sessions will be crucial in determining the S&P 500’s path forward. 📮 Takeaway Monitor the 4,400 resistance and 4,350 support levels closely; a break could signal strong momentum or a pullback opportunity.

ING analysts Warren Patterson and Ewa Manthey note that constructive US–Iran nuclear talks are weighing on Oil prices, even as uncertainty keeps a risk premium in Brent. They highlight increased speculative net longs in ICE Brent and a bullish volatility skew. 🔗 Source 💡 DMK Insight Oil prices are under pressure from US–Iran nuclear talks, but here’s why that matters: The ongoing discussions are creating a complex environment for traders. While the talks could lead to a more stable supply situation, the uncertainty surrounding them is keeping a risk premium in Brent crude. This means that while prices might dip due to optimism, the potential for geopolitical tension remains a wild card. Increased speculative net longs in ICE Brent indicate that traders are positioning for a rebound, but the bullish volatility skew suggests they’re also bracing for potential swings. Look for key resistance levels around recent highs, as a break could trigger further buying. Conversely, if talks falter, we might see a quick sell-off. Traders should monitor the news closely for any updates on the negotiations, as they could shift sentiment rapidly. Also, keep an eye on correlated markets like natural gas, which often reacts to oil price movements and geopolitical developments. 📮 Takeaway Watch for Brent crude’s resistance levels; a break could signal further upside, while failed talks may lead to a sharp sell-off.

Silver (XAG/USD) builds on Friday’s solid recovery from the $64.00 mark, or its lowest level since December 17, and gains some follow-through positive traction at the start of a new week. 🔗 Source 💡 DMK Insight Silver’s bounce from $64.00 is more than just a recovery; it signals potential bullish momentum. Traders should note that this level was a significant support zone, and the recent uptick could attract more buyers, especially if it holds above this threshold. If silver can maintain its position above $64.00, we might see a test of resistance around $68.00 in the coming weeks. This could also have ripple effects on related assets like gold, which often moves in tandem with silver. Keep an eye on the broader economic indicators, particularly inflation data and interest rate decisions, as they could influence precious metals’ performance. On the flip side, if silver fails to sustain above $64.00, it could trigger a wave of selling, pushing prices back down. So, watch for any signs of weakness, especially if it dips below this level again, as that could signal a bearish reversal. 📮 Takeaway Watch for silver to hold above $64.00; a failure to do so could lead to a bearish trend, while a sustained rally may target $68.00.

Amazon (AMZN) missed EPS estimates in its December-quarter report, but the business is otherwise literally firing on all cylinders. 🔗 Source 💡 DMK Insight Amazon’s EPS miss is a red flag, but the underlying business strength could be a buying opportunity. While the earnings report might have disappointed some traders, the fact that Amazon is ‘firing on all cylinders’ suggests robust operational performance. This discrepancy between earnings and operational strength could lead to a potential rebound in share prices, especially if the market focuses on long-term growth rather than short-term misses. Traders should keep an eye on key technical levels; if AMZN can hold above its recent support level, it could signal a bullish reversal. Additionally, watch for any guidance from Amazon that could indicate future growth trajectories, as this will be crucial for sentiment. On the flip side, the EPS miss could trigger some profit-taking from short-term traders, leading to increased volatility. If AMZN dips below its support, it might attract more selling pressure. So, monitor the stock closely for any signs of recovery or further weakness in the coming days. A decisive move above the recent highs could reinvigorate bullish sentiment. 📮 Takeaway Watch for Amazon to hold above its support level; a rebound could signal a buying opportunity despite the EPS miss.

Here is what you need to know on Monday, February 9: 🔗 Source

DBS Group Research’s Philip Wee analyses how Japan’s snap election and the so‑called Takaichi Trade could shift expectations for USD/JPY. He notes that the Liberal Democratic Party–Inshin landslide may support the Japanese Yen, while markets may be overstating Japanese Government Bond risks. 🔗 Source 💡 DMK Insight Japan’s snap election could be a game-changer for USD/JPY, and here’s why: With the Liberal Democratic Party’s strong showing, expectations for a more stable economic policy could bolster the Yen. Traders should be cautious, though—if the market is overreacting to perceived risks in Japanese Government Bonds, we might see a correction. This situation could lead to a short-term strengthening of the Yen against the Dollar, especially if USD/JPY approaches key resistance levels. Watch for any shifts in sentiment as the election results settle; a move below a certain threshold could trigger a wave of selling in USD/JPY. On the flip side, if the market continues to price in excessive risk for Japanese bonds, we might see a rebound in USD/JPY as traders seek safety in the Dollar. Keep an eye on the 145 level for USD/JPY; a break above could indicate a return to bullish sentiment for the Dollar. Overall, monitor bond yields closely as they could dictate the next moves in this currency pair. 📮 Takeaway Watch USD/JPY closely around the 145 level; a break could signal a bullish reversal for the Dollar as bond risks are reassessed.

NZD/USD extends its gains for the second successive session, trading around 0.6020 during the European hours on Monday. The pair appreciates as the US Dollar (USD) declines, as traders adopt caution ahead of looming key economic data delayed by the partial government shutdown. 🔗 Source 💡 DMK Insight NZD/USD is on a roll, hitting around 0.6020 as the USD weakens—here’s why that matters: The recent gains in NZD/USD come as traders are cautious, anticipating key economic data that’s been delayed due to the partial government shutdown. This uncertainty often leads to a risk-off sentiment, pushing traders toward currencies like the NZD, which can offer better yields. If the USD continues to decline, we might see NZD/USD testing resistance levels around 0.6050. Keep an eye on the upcoming economic indicators; if they come in weaker than expected, it could further bolster the NZD against the USD. But let’s not ignore the flip side: if the government shutdown resolves and the USD regains strength, we could see a quick reversal. Traders should monitor the 0.6000 support level closely; a break below could signal a shift in momentum. Watch for volatility in the next few days as data releases approach, which could create trading opportunities in both directions. 📮 Takeaway Watch the 0.6000 support level in NZD/USD; a break could signal a shift, especially with key economic data on the horizon.