The equity week began on a positive note, the SPX printing 3402, and settling +42pts (1.3%) to 3383. Meanwhile, WTIC cooled by -7cents (0.2%) to $37.26
sp’weekly1b
WTIC daily
Summary
sp: I would note the weekly 10MA is now at 3349. Any weekly close <3300 would be decisive, and offer a test of m/t rising support in the mid/low 3100s.
wtic: a day of moderate chop for oil, leaning on the weaker side. Major support of 32/30 appears set to be tested, and would sync with the sp’ losing the 3300s.
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Looking ahead
Tuesday will see Empire state manu’, and indust’ prod’
Earnings: CBRL, HMY, FDX, ADBE
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PF chart of the day
The computer has a bearish target of the $43s.
Citi, monthly
Today’s WSJ report that banking regulators are set to ‘reprimand’ Citigroup sure didn’t help, as the stock remains m/t bearish. Note the failed recovery/breakout, with a upper spike from the 10MA in June. Note the monthly 10MA in the $54s, I can’t take the stock seriously unless a monthly settlement above it, and that doesn’t seem likely.
Whilst the March low of the $31s appears out of range, some further cooling – with the main market, could be expected ahead of the election. The US financials – especially the trading firms and banks, need higher rates, and that is clearly not going to happen any time soon. This Wednesday’s FOMC will be another reminder of ZIRP, and the stock/sector looks problematic into October. For a financial short, I would lean to the gross sector laggard of Wells Fargo (WFC), which isn’t far from breaking the May lows.
Goodnight from London