CANADA DATA: Services PMI Shows Sharp Contraction In March

• Stocks are mixed in later trade, S&P Eminis managing to claw their way off January lows, while the Nasdaq is in the green led by semiconductor stocks. Little has changed regarding underlying risk sentiment, however, global markets still concerned over the impact of 25% US import tariffs against Canada & Mexico, 20% on China, not to mention agriculture products starting April 2.
• Currently, the DJIA trades down 314.99 points (-0.73%) at 42874.67, S&P E-Minis down 20.25 points (-0.35%) at 5840.0 (vs. 5744.00 low), Nasdaq up 101.8 points (0.6%) at 18450.86.
• Information Technology and Communication Services sectors led gainers in the second half, semiconductor makers buoyed the Tech sector: Super Micro Computer +10.20%, Enphase Energy +8.61%, First Solar +4.14% and NVIDIA +3.00%.
• Interactive media and entertainment shares buoyed the Communication Services sector with Match Group +3.38%, Warner Bros Discovery +2.90% and Alphabet +2.89%.
• Financial and Consumer Staples sectors lead the decline in late trade: banks and services led laggers in the former with Citigroup -5.07%, Ameriprise Financial -5.01%, Discover Financial Services- 4.95%, Capital One Financial Corp-4.87% and Bank of America -4.72%.
• Meanwhile,  Target -3.10%, Coca-Cola -2.56%, Estee Lauder Cos -2.54% and Philip Morris International -2.46% weighed on the Consumer Staples sector.
• Earnings expected after the close include: Crowdstrike Holdings, Ross Stores, Foot Locker, Campbell's, Abercrombie & Fitch, Brown-Forman Corp, Marvell Technology and Victoria's Secret.

• RES 4: 154.80 High Dec 12 ‘24 and a key resistance     
• RES 3: 152.83 50-day EMA 
• RES 2: 151.30 High Mar 3 and a key near-term resistance  
• RES 1: 149.65 Intraday high 
• PRICE: 148.49 @ 16:29 GMT Mar 4 
• SUP 1: 148.01 Low Oct 9 ‘24 
• SUP 2: 147.02 2.0% 10-dma envelope
• SUP 3: 146.95 61.8% retracement of the Sep 16 ‘24 - Jan 10 bull leg
• SUP 4: 145.92 Low Oct 4 ‘24

USDJPY traded sharply lower Tuesday. The move down has resulted in a print below support at 148.57, the Feb 25 low, to confirm a resumption of the downtrend. The break lower has also resulted in a clear breach of 148.65, the Dec 3 ‘24 low. This paves the way for an extension towards 146.95, a Fibonacci retracement. On the upside, key short-term resistance has been defined at 151.30, the Mar 3 high. Clearance of this level is required to signal a base.    

• US stocks are  making a recovery since midday, Nasdaq in the green as Tech sector of all places lead the bounce with Super Micro Computer Inc, Enphase Energy Inc and First Solar Inc all up 5.5-8.5% at the moment.
  • DJIA  down 266.35 points (-0.62%) at 42503.93
  • S&P E-Mini Future  down 15.5 points (-0.26%) at 5774.5
  • Nasdaq up 104.5 points (0.6%) at 18144.75