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Market Recap – Thursday, August 9th 2018

August 9, 2018

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MARKET SNAPSHOT
Dow25509.23-74.52(-0.29%)
Nasdaq7891.79+3.46(0.04%)
SP 5002853.32-4.12(-0.14%)
10-yr Note+11/322.925
NYSEAdv 1448Dec 1410Vol 651.1 mln
NasdaqAdv 1500Dec 1388Vol 2.03 bln

 

IN THE NEWS HIGHLIGHTS:
  • Stocks resume Wednesday’s sideways trend as the Q2 earnings season winds down.
  • Largely positive reaction to the latest batch of quarterly earnings.
  • Crude oil continues to slump.
  • U.S. dollar resumes bullish run.

 

RECAP– The market continued to trade sideways as bullish momentum has completely stalled, dipping into negative territory toward the end of the day. Crude oil continued its prior day’s selloff and slumped a little further. The US Dollar resumed its previous bullish run and rallied well past 95 on the Dollar Index.

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

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


Economic Calendar

Today

  • August 9: PPI m/m – Actual: 0.0%  Forecast: 0.2%  Previous:  0.3%
    • The producer price index measure the cost to produce goods which is a leading indicator for inflation as that cost is passed on to the consumer. Low PPI isn’t necessarily bad for consumers, but is a sign of stubborn inflation.
  • August 9: Unemployment Claims – Actual: 213K  Forecast: 220K  Previous:  219K
    • Unemployment claims remain exceptionally low which is great for a tightening labor market.

 

Upcoming Reports

  • August 10: CPI m/m
  • August 10: Core CPI m/m

 

FedWatch September 26 Rate Hike Probability for August 9:  96.0% (View the probability chart here)


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

  • RSI is above 50 signifies some form of bullishness.
  • On Balance Volume is at its moving average.
  • The market has been on a bullish rally since May and has been keeping a steady pace.
  • This week has seen the market hit some form of resistance around the 2860 area with bullish momentum having stalled.

 


A Look Into the Heat Map

The market was mixed for a second day in a row.

 

(click on symbol for chart)
SPX – Bullish 
DOW– Bullish
Nasdaq– Bullish
Russell – Bullish

VIX – 11.22

COMMODITIES

Oil (USO)Bullish
Ag (DBA)Bearish – Agriculture has been very bearish for the past month, possibly coinciding with the dollar’s strength. DBA seems to be forming support finally at $17 and putting in a bottoming pattern.
GLD Bearish – Similar to Agriculture, gold and silver have been sliding for the past month, largely due to renewed strength in the US dollar. The trend should be slowing down with the dollar having found resistance of 95. 
SLVBearish 

THE DOLLAR

UUP USD weighted ETF – Bullish – The fundamentals in the dollar have been bullish and I’d expect it to stay that way against other weakening currencies.

 


SOLON’S TRADING THOUGHTS

The market started the week very bullish, but momentum has stalled over the past few days. It’s too soon to call this a top and where the market would correct. Be mindful that the end of August, and more often the middle of September, is historically when the market experiences some form of bearish correction. As summer carries on, the summer lull is bound to come to an end and volatility should be back in the market. Be mindful of the market’s seasonal tendencies.


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