The equity week began on a rough note, with the SPX printing 3229, and settling -38pts (1.2%) to 3281. Meanwhile, WTIC settled -$1.78 (4.3%) to $39.54.
sp’weekly1b
WTIC daily
Summary
sp: We have a s/t series of lower highs and lower lows. It does seem that further downside to around 3100 is a given. Whether September settles above or below key support… very difficult to say. I will just add… the current monthly bearish engulfing candle… should seriously spook the bulls.
wtic: oil was dragged lower by the main market, with extra pressure via the stronger dollar. Major support 32/30, which would arguably sync with sp’3100.
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Looking ahead
Tuesday will see Existing home sales
Earnings: AZO, NKE, ACB, SFIX, KBH
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PF charts of the day
The computer is holding to a bearish target of the $33s… where the 200dma is lurking… and also the monthly 10MA…
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Final note… sp’daily3
I would note the 38% retrace to 3054. That would be under m/t support. Either we see a hyper spike from around there…. or the March lows would have to be brought onto the menu (not least if the Sept’ monthly candles remain of the bearish engulfing type).
Best guess… market finds a floor from around 3100, with the political hacks… ‘inspired’, to agree on some kind of stimulus bill.
Goodnight from London