10 Minute Read

Market Recap August 28, 2017

August 28, 2017

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MR

 

MARKET SNAPSHOT
Dow21809.70-5.27(-0.02%)
Nasdaq6283.00+17.37(0.28%)
SP 5002445.69+1.19(0.05%)
10-yr Note+2/322.16
NYSEAdv 1385Dec 1545Vol 705 mln
NasdaqAdv 1413Dec 1454Vol 1.55 bln

 

IN THE NEWS HIGHLIGHTS:

  • M&A activity boosting health care sector: GILD buying KITE for $180/sh.
  • Relative strength in the technology sector.
  • Insurance stocks lose ground, weigh on financial sector, in wake of Hurricane Harvey.
  • Apple moves up on news of September 12 product event, which participants think equates with iPhone 8 introduction.
  • Crude oil breaks support of $47.
  • US dollar sells significantly.

 

RECAP– The markets gave up their bullish premarket outlook as they sold off much of the day to close rather flat. Crude oil broke down today as it blasted past previous support of $47 and stopped short of $46. The US dollar gapped lower following the weekend open and continued to sell off throughout the day. 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

  • Nothing major today.

 

Upcoming Reports

  • August 29: CB Consumer Confidence
  • August 30: ADP Non-Farm Employment Change
  • August 30:  Prelim GDP q/q
  • August 30:  Crude Oil Inventories
  • August 31:  Unemployment Claims
  • September 1:  Average Hourly Earnings m/m
  • September 1:  Non-Farm Employment Change
  • September 1:  Unemployment Rate
  • September 1:  ISM Manufacturing PMI

 

FedWatch September 20 Rate Hike Probability for August 28: 1.4% (View the probability chart here)


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

  • RSI is at 50.
  • On Balance Volume is below its moving average.
  • Over the past month, the market has pulled back from its all-time high in July. It’s prior bullish uptrend was broken after a few large selloffs over the past couple of weeks.
  • The current short-term momentum is slightly bearish to neutral, with the market consolidating into a tight range and forming a pennant. This is a sign that the market is tightening before it breaks out in either direction.

 


A Look Into the Heat Map

The market was flat today with some strength seen in Healthcare.

 

(click on symbol for chart)
SPX – Neutral
DOWNeutral
NasdaqNeutral
Russell Neutral

VIX – 11.32

COMMODITIES

Oil (USO)Bullish – Crude oil is retracing following its previous rally as it has hit resistance of $50. A break under $46 could signify a reversal of trend.
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

There is plenty of economic data to come out this week, including jobs numbers. As we saw from the previous several weeks, volatility is beginning to reenter the market and significant selloffs are becoming more common. The Trump honeymoon looks to be over, and such things such as poor economic data and geopolitical concerns will likely carry a greater impact in affecting the stock market, especially considering its current frothy valuations.


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