|NYSE||Adv 1283||Dec 1613||Vol 927.0 mln|
|Nasdaq||Adv 1015||Dec 1725||Vol —|
IN THE NEWS HIGHLIGHTS:
- Top-weighted technology sector sells off, weighs on broader market.
- Transports underperform, DJTA drops nearly 3.0%.
- Retailers tick up on headlines that tax reform plan will not include a boarder tax.
- Treasuries slip following June Durable Orders (6.5% actual vs 2.9% consensus).
- Crude oil continues its bullish run.
- US dollar hit support of 93 and has been rising.
RECAP– The market failed to break through resistance of 2480 and sold off strong in the morning only to pull back a little in the afternoon. Crude oil continued rally as it passed $49 and is approaching the $50 mark. The US dollar hit 93 at midnight and has been on a significant rally since then, showing to be a significant level of support.
In-depth look of daily news at Briefing.com (CLICK HERE)
In-depth look at after hours movers (CLICK HERE)
- July 27: Core Durable Goods Orders m/m – Actual: 0.2% Forecast: 0.4% Previous: 0.3%
- The increase in orders placed with manufacturers was less than expected, but was offset by a last month’s figure being revised higher.
- July 27: Unemployment Claims – Actual: 244K Forecast: 240K Previous: 234K
- Unemployment claims continue to remain relatively low.
- July 28: Advance GDP q/q
FedWatch September 20 Rate Hike Probability for July 27: 0.0% (View the probability chart here)
A Look At The S&P 500 Chart – KEY Levels
- RSI is above 50.
- On Balance Volume is above its moving average.
- The market has been pressing resistance of 2480 for much of the week, but has failed to break through.
A Look Into the Heat Map
Very unusual day in the market to see companies not only this scattered, but also being extremely bullish/bearish. This is a result of earnings results being reported.
VIX – 10.11
Oil (USO) – Bearish – Currently forming a bullish reversal pattern, and inverted cup and handle/ascending triangle. A low had been put in at $42, then again at $44, and now at $46. The bullish trigger for this should be above $47. Broke past our trigger which we previously identified. With the current momentum, it could run well to $50.
Ag (DBA) – Bearish
GLD – Bullish
SLV – Bearish
UUP – USD weighted ETF – Bearish – The US dollar has been on a bear run. Look for support to be put in soon at 93. This level has consistently held as support for most of the last 2 and a half years since it has be put in. The dollar has hit 93, support held, and the dollar has been consistently rising.
SOLON’S TRADING THOUGHTS
The market is currently at resistance following a two week rally. This will be a busy week as economic reports are being released as well as an FOMC statement. It is not expected however that the Federal Reserve will raise interest rates as they have done so twice already and have been adamant on three rate hikes, the third of which will likely take place in September or December.
This is a great time to break out some of your favorite earnings plays and at the very least practice in a paper account. Make sure to be mindful of the earnings date prior to placing a trade. The following companies are reporting earnings over the next several days:
With the VIX closing below 10, this continues to be an opportune time to buy protective puts on a portfolio as a hedge during the summer lull before they go up in price again. The summer is usually characterized by flat trading before a selloff just before or in the beginning of Fall. Be mindful of seasonality.
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