5 Minute Read

Market Recap – Wednesday, July 11th 2018

July 11, 2018

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MARKET SNAPSHOT
Dow24700.45-219.21(-0.88%)
Nasdaq7716.63-42.59(-0.55%)
SP 5002773.76-19.82(-0.71%)
10-yr Note+4/322.842
NYSEAdv 866Dec 2175Vol 697.2 mln
NasdaqAdv 1025Dec 1915Vol 1.75 bln

 

IN THE NEWS HIGHLIGHTS:
  • 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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In-depth look at after hours movers (CLICK HERE)


Economic Calendar

Today

  • 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.

 

Upcoming Reports

  • 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.

 

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

VIX – 13.62

COMMODITIES

Oil (USO)Bullish
Ag (DBA)Neutral
GLD Neutral 
SLVNeutral 

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

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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