The shares of Caterpillar Inc., the world's leading manufacturer of construction and mining equipment, are trading in a corrective trend around 217.

On the daily chart of the asset, a global Expanding formation pattern is forming, within which the price is in the stage of developing another wave of decline, with the target located at the low of the year 179.

On the four-hour chart, a downward wave is formed within a local channel with dynamic boundaries at 193 – 213. Since it is the fourth in a row, according to the classical scenario of the development of a price pattern, the probability of its complete completion is very high, which is also confirmed by the indicators: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram forms bars in the sell zone.

The Dow Jones index is correcting in an uptrend at 33113.5. The American stock market continues to trade with serious volatility caused by increased activity of investors and their reaction to the fundamental background.

The day before, the Head of the White House, Joe Biden, held a meeting with US Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen, following which he stated that he did not intend to interfere in the regulatory process and fully supported the plan of the American financial authorities to combat record inflation. Investors took this statement as a clear "hawkish" signal, confirming the words of US Federal Reserve Board member Christopher Waller, who did not rule out a 50 basis point increase in interest rates at each of the subsequent meetings. Thus, the value by the end of the year may exceed 2.25%. The "hawkish" policy of the regulator is designed to fight inflation; however, the rapid pace of adjustment of monetary policy parameters may have a negative impact on corporate profits, which the American business may feel in the summer, when the second period of corporate reporting begins.

Quotes of the index are traded within a wide downward channel, being in the middle of the range. Technical indicators are holding a sell signal, which is rapidly weakening: the fluctuation range of the Alligator indicator EMAs has narrowed almost completely, and the histogram of the AO oscillator is forming new upward bars, being in the sell zone.

Support levels: 32550, 31217 | Resistance levels: 33290, 34950

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Against the backdrop of the upward dynamics of the US dollar, the AUDUSD pair is correcting around 0.7190, despite the multidirectional reaction of investors to the incoming macroeconomic statistics.

Yesterday, Australia's Q1 GDP was published, and the indicator's growth slowed down to 0.8% from 3.6% QoQ but still was higher than the experts' forecast of 0.5%, which was taken into account by the participants trading in quotes. The value consolidates around 3.3% YoY, which is better than the preliminary market estimates of 2.9% but inferior to 4.4% in the previous quarter. Given the significant rise in fuel and food prices, we can say that the Australian economy is in a stable state. It is reflected in retail sales, which rose by 0.9%, in line with forecasts.

The American currency showed an active decline all last week, but now, the quotes have won back the losses and reached 102.500 in the USD Index against the backdrop of a positive report from the Institute of Supply Management (ISM), which said that Manufacturing PMI rose to 56.1 points from the April value of 55.4 points, surpassing analysts' expectations of 54.5 points. Meanwhile, according to JOLTS, the number of open vacancies in the labor market expectedly decreased and amounted to 11.400M for April, which is slightly inferior to 11.855M.

On the global chart, the asset moves within the Expanding formation pattern, rising within the fifth wave. Technical indicators reversed and gave a new buy signal: fast EMAs on the Alligator indicator crossed the signal line upwards, and the AO oscillator histogram formes upward bars in the buy zone.

Resistance levels: 0.7258, 0.7573 | Support levels: 0.7045, 0.6851

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The shares of eBay Inc., the world's largest online auction, are correcting upwards around the level of 47.

On the daily chart, the price is falling within a narrow downwards channel, approaching the resistance line. The key support remains a full correction of 61.8% Fibonacci 46, after its breakdown, the downward dynamics will intensify. On the four-hour chart, local growth may continue after consolidation above the local high of last week around 48.8. In this case, the movement target will be the 50.0% Fibonacci intermediate correction level at 53.3.

At the moment, fast EMAs on the Alligator indicator are approaching the signal line, and the AO oscillator histogram is forming upward bars in the sell zone.

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The shares of Johnson & Johnson, the world's largest maker of health products, are correcting, trading at 176.

On the daily chart, the price is within the global ascending channel with dynamic boundaries of 166 –1 87, reversing from the resistance line towards the support.

On a four-hour chart, the channel's support line coincides with the multi-year support level at 166, which the asset is aiming for. The key obstacle for the downside momentum is the low of last month at 173, after which the potential for further downside dynamics will increase. The indications of technical indicators also confirm the continuation of the decline: fast EMAs on the Alligator indicator crossed the signal line downwards, and the AO oscillator histogram fell into the sell zone, where it is now, forming new downwards bars.

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Weak statistics put pressure on the stock market
DAX 30 is correcting upwards trading at 14592 ahead of what could be the most productive European Central Bank's (ECB) meeting in 8 years.

High annual inflation, recorded in April at around 7.5%, is forcing officials to move to tighten monetary policy, the first step towards which can be taken tomorrow. According to preliminary statements by the President of the regulator, Christine Lagarde, a complete cessation of the asset purchase program may be announced, and the question of raising the interest rate from –0.50% to a positive value may also be raised. The indicator was last updated in July 2011. According to Lagarde, these measures are necessary to curb the rapid growth in consumer prices, which could exceed the 9% barrier as early as June.

In turn, macroeconomic statistics remain negative, putting pressure on the stock market. According to data for April, the volume of Factory Orders in Germany decreased by 2.7% against an expected increase of 0.3%, and the Construction PMI fell to 45.4 points from 46.0 points a month earlier.

On the global chart of the asset, the price continues to implement the local Flag pattern, gradually moving away from the resistance line. Technical indicators maintain a steady buy signal: fast EMAs on the Alligator indicator are actively moving away from the signal line, expanding the range of fluctuations, and the AO oscillator histogram, having moved into the buy zone, forms ascending bars.

Support levels: 14350, 13540 | Resistance levels: 14836, 15710

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The Nasdaq 100 index shows a lateral trend, trading at 12590.
US stock indices continue to experience significant pressure from the growth of bond yields, but are kept in the sideways amid investors' expectations regarding tomorrow's publication of data on consumer prices. Inflation in May could reach 0.7% after rising by 0.3%, while the annual rate, according to preliminary estimates, could remain at 8.3% in April, which, however, is unlikely given the monthly increase in fuel prices by almost 12% and the growth of oil prices above 122 dollars per barrel. In any case, until the actual data is published, new large transactions should not be expected.

Yesterday's auction for placement of 10-year Treasury notes ended with the expected growth of yield up to 3.030% against 2.943% at the previous placement. Today, auctions will be held for the placement of short-term treasury bills from 3 to 8 weeks, as well as global 30-year treasury bonds, the rate of return on which is now 3.183% against 2.997% before.

Index quotes form a global downward channel, being in the middle of the range. Technical indicators are in a state of uncertainty: the range of EMA fluctuations on the Alligator indicator is narrowing actively and the AO oscillator histogram is near the transition level.

Support levels: 12200, 11470 | Resistance levels: 12895, 14200

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The American stock market remains negative
The pressure on the American stock market is increasing against the background of the expected maintenance of inflation at the level of 8.3%, which, in turn, justifies the forecasts regarding the continuation of aggressive rate hikes by the US Federal Reserve. The traders are also concerned about the slowdown in the growth of the national economy, as well as the threat of a possible recession.

In the corporate segment, the American technology company Intel Corp. suspended the recruitment of new employees in the computer chip division due to increased risks of economic uncertainty, which forced management to reconsider the capital investment plan and the functioning of the departments.

Growth in the domestic bond market continues to be a negative factor for the index. According to yesterday's auction report, 3-week and 8-week short-term Treasury bills were placed at an increased rate of 1.040% and 1.150%, respectively, eliminating the possibility of a downward correction, while global 30-year Treasuries were placed at a rate of 3.185%, significantly higher than 2.997% on the previous placement.

Quotes of the index are traded within a wide downward channel, reversing downwards. Technical indicators have significantly weakened the buy signal and are actively declining: the fluctuation range of the Alligator indicator EMAs has narrowed almost completely, and the histogram of the AO oscillator is forming new descending bars, being in the buy zone.

Support levels: 31900, 30620 | Resistance levels: 32690, 34100

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On the daily chart of the asset, the price, having left the limits of the global downward channel with the boundaries of 148 – 176, has broken the support line and completed the formation of a reverse test, which may signal a further continuation of the global decline to the basic trend of 100.0% on the Fibonacci expansion around 105.

On the four-hour chart, the trading instrument has broken the current local low at 132, which is the last necessary condition for continuing the downward dynamics of quotations. The nearest support for the price is the initial 61.8% Fibonacci extension trend at 122.

At the moment, indicator Alligator’s EMA oscillation range expands downwards, and the histogram of the AO oscillator forms downward bars in the sell zone.

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Tesla, technical analysis
On the daily chart, the price is within the global Expanding formation pattern, gradually approaching the support line around 550. At the moment, the formation of the fifth downward wave is observed, which has reached the basic trend of 100.0% of the Fibonacci extension around 628.

On a four-hour chart, the local dynamics close within the Triangle pattern with dynamic boundaries of 746 – 628, the location of which confirms the further development of negative dynamics. Fast EMAs on the Alligator indicator continues to move away from the signal line, and the AO oscillator histogram forms bars with a downward trend in the sell zone.

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