Good morning. US equity futures are broadly flat, SPX u/c, we’re set to open at 3281. USD is -0.1% in the DXY 93.57s. The precious metals are leaning weak, Gold -$5 (printing $1898s), with Silver -2.4% (printing $23.91). WTIC is -0.6% in the $39s.
sp’60min
Summary
*we’re in the very last few hour/s of summer, as Autumn/fall officially begins just after the opening bell… at 9.31am.
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Yesterday was pretty ugly, printing a new cycle low of 3229. The closing hour saw a mini ramp, settling above the hourly 10MA.
We’re set to open on a choppy note, with s/t momentum prone to turning positive by late morning.
Having declined for three days, a 1-2 day bounce would be pretty natural. I would note secondary teal gap of 3346/85, which is within range this afternoon/early Wed’.
For now, bounces are to be seen as such as broader downside to 3100 appears probable.
Key event: Powell is due before the US House this morning- around 10am. Mr Market already has the prepared remarks, but the Q/A will merit attention, and will no doubt be covered live on CNBC, and their youtube feed.
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Early movers
AAPL +1.4%
ACB +2.5%, earnings due in AH
AMD +0.5%
AMZN +1.6%
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AZO +3.7%, EPS $30.93 vs 22.72est. Rev’ y/y +14.0% to $4.5bn vs 3.9est. COMPS +21.8%, VERY impressive.
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BA +0.8%
BAC +0.2%
FB +1.1%
FCX +1.3%, with copper +4cents to $3.07. Copper itself is fairing surprisingly well, relative to silver/gold.
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GDX -0.3%
GOLD -0.1%
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GME +17.8%, Bloomberg news/chatter that investor Cohen wants to compete with Amazon. The notion is… ludicrous, for a company that remains in l/t decline.
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MSFT +1.0%
NEM -0.2%
NIO -1.6%
NKE +0.3%, earnings due in AH
NKLA -2.5%, the horror continues
NVDA +0.8%
ORCL -1.2%, report that Beijing unlikely to approve tiktok deal
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PTON -3.0%
PYPL +1.2%, catching a bounce
ROKU -0.8%, cooling after Monday gains
SNOW +2.7%
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TSLA -4.3%, its Battery Day, but the stock was hit Monday in AH, after Elon warned it will take until at least 2022 to scale up production.
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TLT -0.1%, yields a touch higher
UAL +1.1%
VALE +1.5%
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VIX +1% in the 28s
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WPM -0.5%, lower silver
X +0.2%, dead cat bouncing
XOM +0.4%, but will be prone to turning red.
ZM +1.5%, pushing for a new hist’ high.
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Overnight markets
Asian markets were significantly lower, whilst European markets are catching a bounce…
Japan: CLOSED
China: -1.3% at 3274
South Korea: -2.4% at 2332
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Germany: currently +1.1% at 12683
UK: currently +0.4% at 5828
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A little perspective…
SPX, weekly3
Note the first red Elder candle since late March. Sure, it might turn blue for a day or two, but I’d guess it settles this week red, and it will be supportive to the notion of at least 3100. I would note the lower weekly bollinger, currently at 2877… which is near the 50% fib’ retrace (2889).
Anyway, first things first… a bounce attempt, but an eventual move to 3100… where we’ll see if its enough to ‘motivate’ the political hacks to pass some kind of stimulus bill.
Have a good Tuesday