Thursday Economic News. How Is the Market Going to React?

Fundamentals

ADP released its US employment report yesterday. The statistics were good: The number of people employed rose to 263,000.
At 2 PM GMT, the ISM non-manufacturing index was released. It was below expectations at 55.2.
Those trading on the Russian market were surely watching the local CPI, released at 4 PM local time (1 PM GMT), coming in at 4.3%. The Russian CPI has been declining since last July, proof of the Central Bank of Russia’s policy on controlling inflation is effective, keeping it at the target 4%.
The traditional Thursday initial jobless claims report is coming out today at 1:30 PM GMT. The number is expected to drop to 251,000.
Additionally, we’d advise watching for a number of noteworthy monetary officials who are speaking today, such as the FOMC's John Williams, P. Pratt at 4:30, and the ECB Vice President Vitor Costâncio at 5:15 GMT. Remarks by a number of other ECB officials on Thursday should not be missed.

Stocks

CarMax is releasing its earnings report today. The car retailer’s EPS is expected to rise slightly to $0.79. The company’s stock, which is listed on the NYSE, is now trading within a correction wave, with the bears now in total control of the situation. Still, the company’s shares might be inside the 4th wave on the weekly charts. This means that we can expect continued growth and the formation of the 5th wave.
Meanwhile, the DJIA is still forming an inverted flag. However, the index broke through the 9-day MA Wednesday, while the MACD crossed the signal line. It looks like in the next few sessions we'll see which factors will prevail. For now we think that the bulls are in a fairly dangerous position, but it's still too risky to open any short positions before the short-term trend reversal occurs. Cautious traders may want to look for another asset, while more aggressive investors might test the index’s strength.
In Russia, the MICEX Index crossed the EMA and soared at the market opening. As we’ve noted, a lot will depend on how successfully the attack on 2,060 will be. If it this marker is overcome, the index may well enter the 3rd impulse wave.

Currency Market

Going long on the EUR/NZD pair was a good idea, as we noted. The pair broke through the 9-day EMA, giving a confirmed buy signal. It was reinforced by a rising MACD and a pattern that looks like a bearish flag on weekly time frames. The resistance is near 1.5355, which is a 23.60% Fibonacci retracement.
The CAD/CHF pair formed a V-shaped reversal bottom on the daily charts. The loonie is likely to go flat soon, but buying longs good right now. If the CAD does rise, 0.7558, at a 61.80% Fibo retracement, may be the resistance on the daily charts.

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