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Market Recap August 23, 2017

August 23, 2017

By | 1 Comment

MR

 

MARKET SNAPSHOT
Dow21812.09-87.80(-0.40%)
Nasdaq6278.39-19.07(-0.30%)
SP 5002444.00-8.47(-0.35%)
10-yr Note+14/322.165
NYSEAdv 1525Dec 1358Vol 682.0 mln
NasdaqAdv 1249Dec 1566Vol 1.52 bln

 

IN THE NEWS HIGHLIGHTS:

  • President Trump threatens government shutdown if his promised barrier along the U.S.-Mexico border doesn’t secure funding.
  • New York Times article highlights rift between President Trump and Senate Majority Leader McConnell.
  • Crude oil rises on EIA data.
  • US dollar drops.

 

RECAP– The markets reversed course today and closed slightly lower. Crude oil rose today on the EIA report which indicated a 3M barrel decrease in supply. The US dollar fell just short of support at 93. Gold is hovering just below $1,300 which has served as a strong level of resistance for this past year.

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

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


Economic Calendar

Today

  • August 23: Crude Oil Inventories – Actual: -3.3M Forecast: -3.3M Previous: -8.9M

 

Upcoming Reports

  • August 24: Unemployment Claims
  • August 25: Core Durable Goods Orders m/m
  • August 25:  Fed Chair Yellen Speaks

 

FedWatch September 20 Rate Hike Probability for August 23: 1.4% (View the probability chart here)


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

  • RSI is below 50.
  • On Balance Volume is below its moving average.
  • The market slumped today, and carried the momentum into the close.
  • Intraday support was put in at 2440. It is ominous that there was plenty of bearish momentum heading into the close as well as an “M” pattern.

 


A Look Into the Heat Map

The market slumped lower today with the exception of some Basic Materials and Utilities which received a boost. REIT‘s also did well, which may indicate a flight to safety as it moved along with Utilities.

 

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

VIX – 12.25

COMMODITIES

Oil (USO)Bullish – Crude oil is retracing following its previous rally as it has hit resistance of $50.
Ag (DBA)Bearish
GLD Bullish – Gold has been on a recent rally. It is currently consolidating below $1,300. Expect a pullback before it breaks through that resistance level.
SLVBearish

THE DOLLAR

UUP USD weighted ETF – Bearish

 


SOLON’S TRADING THOUGHTS

This will be a slow week as far as economic news and data. I don’t believe that we’re out of the woods just yet as far as another selloff. If we see relief and the market pull back to 2450, there could be a selloff right around the corner again. It would be wise to use any rally in the market to buy puts and hedge.


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One Reply to “Market Recap August 23, 2017”

  1. Avatar FRANCOCORIA says:

    Thanks Solon…could you give some tips on hedging buy buying puts? haw for OOM and time would you suggest?

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