10 Minute Read

Market Recap August 14, 2017

August 14, 2017

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MR

 

MARKET SNAPSHOT
Dow21993.71+135.39(0.62%)
Nasdaq6340.21+83.68(1.34%)
SP 5002465.80+24.52(1.00%)
10-yr Note-9/322.225
NYSEAdv 2284Dec 681Vol 744.0 mln
NasdaqAdv 2114Dec 714Vol 1.69 bln

 

 

IN THE NEWS HIGHLIGHTS:

  • Market bounces back from last week’s selloff.
  • U.S.-North Korea tension seemingly cools down a bit over the weekend.
  • Crude oil sees biggest selloff in weeks.
  • US dollar rises as it consolidates.

 

RECAP– The markets recovered today in response to last week’s large selloff. Crude oil saw a large selloff today marking the most significant downturn in weeks. The US dollar rallied today as it begins to consolidate at 93.

In-depth look of daily news at Briefing.com (CLICK HERE)

In-depth look at after hours movers (CLICK HERE)


Economic Calendar

Today

  • Nothing major today.

 

Upcoming Reports

  • August 15: Core Retail Sales m/m
  • August 15: Retail Sales m/m
  • August 16: Building Permits
  • August 16: Crude Oil Inventories
  • August 16: FOMC Meeting Minutes
  • August 17: Unemployment Claims

 

FedWatch September 20 Rate Hike Probability for August 14: 1.4% (View the probability chart here)


A Look At The S&P 500 Chart – KEY Levels

  • RSI is above 50.
  • On Balance Volume is below its moving average.
  • The market sold off heavily last Thursday and broke support of 2460.
  • New support was put in at around 2440 and held on Friday as well.
  • The market bounced back today, serving as something of a dead cat bounce. This is common when there is such a pronounced move such as Thursday in the market.
  • Often times, when there is such a sharp move like Thursday’s, that creates new momentum for the other side. There is the potential of a longer term bearish trend to be created. This is also indicated with the 10 and 20 day EMA’s hooking down. The new level of support of 2440 will need to be tested and held before bulls can be confident again.

 


A Look Into the Heat Map

The market was covered in green as it saw relief from last week’s selloff.

 

(click on symbol for chart)
SPX – Bullish
DOWBullish
NasdaqBullish
Russell Bullish

VIX – 12.33

COMMODITIES

Oil (USO)Bullish – Oil completed a bullish reversal and hit our target of $50. At this area, $50 may prove to be a strong area of resistance and the upper end of a trading range.
Ag (DBA)Bearish
GLD Bullish
SLVBearish

THE DOLLAR

UUP USD weighted ETF – Bearish – The US dollar has been on a bear run. We’re waiting for support to be put in as this run has been very significantWith the dollar breaking under 93, look for 92 to be the next level that support can potentially be formed.

 


SOLON’S TRADING THOUGHTS

With tensions with North Korea cooling off over the weekend, we saw the market recover today. With FOMC minutes set to be released this week, it would stand to reason that this week’s activity should be more Fed driven than geopolitically driven.

 

Volatility spiked late last week. It shows you how the market can turn out of nowhere with volatility reentering the market. As the VIX gets lower with the market recovering, it would make more sense to buy puts again. With support being broken last week, the market can easily sell off again at a moment’s notice.


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