Capital.com Research Team

Liquidity in the market has been tightening in recent months as the Federal Reserve’s reserve balances have fallen sharply.

The pullback remains a valuable structure for those looking to engage with existing trends at favourable levels of risk and potential reward. Yet, in live markets, these formations rarely appear in their simplest form. Recognising the difference between the ideal and the complex pullback can help traders refine their approach and manage trades more effectively.

The S&P 500 rose by roughly 20 basis points on 11 November; however, the move was much more subdued than that on 10 November.

Since reporting results, the AI names have been battered amid fears of out-of-control capital expenditure and the damage this is likely to inflict on free cash flow.

The stock market is more concentrated than it's ever been. The top 10 biggest US companies now make up nearly a quarter of the entire global equity market.

Look at Tesla's stock price since 2010 and a clear pattern emerges. Since its IPO 15 years ago, Tesla's stock price has experienced three prolonged periods of stagnation and two major breakouts in between.

Stocks recovered on 5 November, with the S&P 500 rising by about 40 basis points.

The ADP jobs report on Wednesday, 5 November, at 8:15 a.m. Eastern Time is expected to show that hiring in October improved, rising by 25,000 jobs — a significant improvement from the September reading, which showed a decline of 32,000 jobs.

The S&P 500 finished the day unchanged, even though the Fed cut rates by 25 basis points.

The next couple of days will be a defining moment for US equity markets and markets globally, with the Fed, the BOJ, and the ECB all making monetary policy announcements and decisions.