Despite keeping a more Neutralized Bullish Bias yesterday, we gave the spot to buy in both the ES (2803.25-2806) and NQ (7175-7200). To recap, the market incurred profit taking on Friday as there was little to no value at elevated levels ahead of the weekend and a pivotal week. That selling lasted through Monday.
Dollar bulls were absent during Tuesday’s trading session as investors remained on the sidelines ahead of the Federal Reserve’s two-day monetary policy meeting. Markets could offer a muted response to the meeting, especially when considering how there will be no updated economic projections or post-announcement press conference by Federal Reserve Chairman Jerome Powell.
The market has dived head first into a critical stretch. On this last day of the month, the Federal Reserve begins a two-day policy meeting and their preferred inflation indicator, the Core PCE Index, is due at 7:30 a.m. Central. Still, Apple’s earnings report after the bell is arguably the highlight of the day
U.S. equity benchmarks sold of sharply on Friday. A rollercoaster week ended with mixed earnings and a big miss by Twitter weighed on an already damaged sentiment due to Facebook. Here, Friday morning, we called for a lack of value in the 2740’s and investors began to agree, derisking ahead of the weekend.
The week of July 30 presents breakout traders gold, Eurodollar and crude oil setups. All three are in narrow ranges on multiple time frames with inside-range pivots, compared to this week. Monthly pivots are also inside-range on the Eurodollar and crude oil, making this a time-pivots breakout as well. If one considers the last 10 days’ range as a time series, then half of its length could be rotated upwards/downwards in the price axis (use your finger’s distal phalanx for past 5-6 days and rotate 90-degrees up/down) to give a $71.00/barrel or $66.00/barrel target as a rough estimate that may seem today like a crazy place for price to be.
U.S benchmarks are eyeing a strong finish to the week after the S&P 500 closed at the highest level since Jan. 29, the session in which it set its all-time. Amazon beat earnings estimates yesterday after the bell and its gain of 4% premarket has helped the Nasdaq shrug off Facebook’s record loss as it trades more than 1% from yesterday’s low.