Friday technical Video
Key concepts- BUY Materials.. Buy Healthcare.. Sell Technology- S&P Trend will be bullish until 2743 broken
Mild pullback in US Futures ahead of G7 Summit while most of Europe and Asia are lower. Emerging mkt weakness prevalent this am with declines in South African Rand, Hungarian Forint , while Dollar higher by about .045% vs both Euro and Pound. German bunds leading gains in core European bonds, while US Treasuries are trading nearly unchanged in a very little range. While Trump’s barbs with trade partners might make it seem like G7 could be rocky, his CNBC comments this am make it seem like nothing more than negotiation tactics. Yet market still arguably treating uncertainty with above avg volatlity this am
NASDAQ futures down 0.66% and would expect to see Technology begin to underperform through the back part of the month after recent spike to near former highs in SOX while NASDAQ has pushed to new highs. This hasn’t led DJIA and SPX to do the same, so there stands to be a greater likelihood of this index failing and retreating vs the others following suit in moving to new highs. CBOE Put/call at .56 still very much at the low end, so important to see whether Financials bounce can continue and if Technology begins to selloff in a bigger way in the days ahead.
PREMKT GAINERS: ZUMZ, SFIX, DOCU, AXON, EDAP, and on downside- CXO, ONTX, HEAR, AVGO, TEF
S&P broke trend from 5/29, but has bounced in the last few hours. UNDER 2755 would be a negative for today, while OVER 2773 would be a positive for a push back up to near 2800 ahead of FOMC
USD Bounce likely is a selling oppty.. and doubtful DXY gets to 94 before turning down to hit 92.60 area into next week
Crude trying to bounce, but will need to get up over 67.10 to argue lows are in and for now, this stabilization is still within a negative trend, so the next 3-5 days will be important as to how this crude trend develops further. At present, tough to see the last few days as anything more than just minor stabilization as part of downtrend not a larger low