It was a day of mostly positive leaning chop, with the SPX settling +34pts (1.0%) to 3315. Meanwhile, WTIC settled +26cents (0.7%) to $39.80.
sp’weekly1b
WTIC daily
Summary
sp: A day of positive chop, with viable s/t upside to 3340/50, but from there, the market should resume lower toward prime target of 3100. Weekly momentum is set to turn negative next week, which sure won’t help the end month settlement.
wtic: oil was helped via the positive main market. Its arguable that major support of 32/30 would sync with sp’3100. Any further strength in the USD would help see that target range play out.
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Looking ahead
Wednesday will see PMI serv’, PMI manu’, EIA Pet’
Earnings: GIS, CTAS, FUL
Event: Powell will be speaking to the US Senate (10am)
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PF chart of the day
The computer has a pretty bearish PF target of the $83s.
JPM, monthly
JPM is currently net lower for Sept’ by -5.9% at $94.27. Note the past SIX candles are ALL spiky on the upper side, indicative of s/t bullish exhaustion. As Pete Najarian repeatedly notes, JPM just can’t hold above $100.
I would note key price threshold of the $85s, which is notably just $2 above the PF target. S/t bearish… with the sector. The mid/long term problem… the Fed’s ZIRP, and there is no ZERO sign of that nonsense ending any time soon.
I will just add, whilst the US banks are especially problematic, the payment processors – such as PYPL, SQ, V, and MA, are largely insulated from the problem of ZIRP.
Goodnight from London