|NYSE||Adv 866||Dec 2175||Vol 697.2 mln|
|Nasdaq||Adv 1025||Dec 1915||Vol 1.75 bln|
- White House threatens tariffs on $200 billion worth of Chinese goods.
- Investors prepare for what will likely be a contentious two-day NATO summit.
- Cyclical sectors struggle; energy, industrials, and materials lead retreat.
- Oil prices plunge despite weekly inventory report showing a draw of 12.6 million barrels.
- US dollar spikes late morning.
RECAP– The market sold off heavily following yesterday’s close and geopolitical tension surrounding tariffs and Nato talks kept the market lower throughout the day. Despite such a massive decrease in inventories, crude oil sold off heavily today. The US dollar spiked late morning to close the day higher.
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- July 11: Crude Oil Inventories – Actual: -12.6M Forecast: -4.1M Previous: 1.2M
- Despite such a massive decrease in inventories, crude oil sold off heavily today.
- July 12: CPI m/m
- July 12: Core CPI m/m
- July 12: Unemployment Rate
FedWatch August 1 Rate Hike Probability for July 11 2.5% (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 above its moving average.
- The market had been in consolidation for the better part of a week and a half confined to a range between 2700 and 2740.
- Pressure was building in that range, ready for a break in either direction. The market broke to the upside on Friday and carried that momentum into today.
- The market traded sideways today with a slight bullish skew as clear resistance was put in under 2800.
- The market sold off heavily following yesterday’s close and geopolitical tension surrounding trade and Nato talks kept the market lower throughout the day.
A Look Into the Heat Map
The market was lethargic today with Consumer Goods outperforming and Utilities rebounding.
VIX – 13.62
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
This should serve as a slow week for news. There aren’t many notable economic reports or FOMC activity that should move the markets a whole lot in either direction. Look for the bullish sentiment to continue for a little longer until it hits that resistance level of 2790-2800. After that we will see if the market has any more momentum to break out further, but I would expect 2800 to hold for now.
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