Tuesday mid-day Technical Video
Break of support.. but holding just under, for now.
US Equities have struggled to regain losses after the first bounce off the lows looks to be turning back lower post Europe’s close
The area at 2891.75 at Friday’s intra-day lows is important on a closing basis.. as is remaining below 7621 in NASDAQ 100 futures
Breadth seems to be turning down pretty sharply today, at 3/1+ negative and we’ve seen most of Europe close down over 1%- DAX, CAC and SX5E, while SXXP finished lower by 0.70%
Bond yields and the US Dollar are higher, though yields have slipped from earlier highs. Healthcare, Materials, Telecom and REITS are all down more than 1%, and Tech is lower by 0.75% with only Utilities positive on the session.
Overall, its thought that holding losses down under 2891 by the close would start the September pullback, but it’s a necessity to have the NASDAQ leading lower in my view. And this is happening today, with NASDAQ lower by nearly 0.90% and EEM also down more than 2%.
Key developments for today. Thus far. Are the Equity breakdown under last week’s lows for S&P, NASDAQ, while the US Dollar rise continues. And Emerging markets suffering as a result. Both equities and currencies. Meanwhile Crude oil’s early breakout thus far has NOT been able to hold.. and we’re seeing this being given back with 2 hours to go until close
A defensive stance makes sense under 2891, and its right to own/buy implied volatility.
S&P gradually rolling over. Thus far, Bounce attempts back over 2891 look to have failed, and with 3 hours left. Further weakness could face support near 2883, then 2861
NASDAQ also under last week’s lows near 7620 that were thought to be important for today- Failure to regain this causes a move to 7567 briefly but then a larger test of 7400
Crude oil’s early breakout attempt failed and now important to watch if this were to weaken in the days ahead after trapping longs over 71
Movement to new multi-day low closes would be a negative for Crude- Energy never really participated all that dramatically on the upside but down 0.35% with the drop in WTI