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S&P 500 overview: Holds 10-day MA above 2800 resistance level
- Consolidating, trying to break resistance at 2800
- Notice 50-hour MA break on @ES chart amid outside candle
- Bullish triangle remains key pattern as moving averages line up more favorably.
Busiest week of earnings, led by big tech
- About 180 of the S&P 500’s member companies on the docket
- Facebook (FB), Amazon.com (AMZN), Advanced Micro Devices (AMD), Twitter.com (TWTR), Alibaba (BABA), Intel (INTC) etc
- Results strong so far
- Factset: 87% have beat on EPS, 77% beat on revenue
- Factset: 11.6% profit margin highest in at least a decade. Seen → 11.8% next two quarters.
- See the calendar for more.
- Cleveland-Cliffs (CLF) options strategy pays off.
Sectors diverge as sentiment shifts toward cyclical growth
- Banks, financials lead in the trailing 1-week period
- Railroads proceed to new highs. Suppliers following. (TRN, RAIL, ARII, GBX)
- Industrials: Stanley Black & Decker (SWK), Cintas (CTAS), Snap-On (SNA), WW Grainger (GWW) join the strong earnings parade.
- Potential catalysts:
- Thursday morning: Durable goods
- Friday: Q2 GDP initial estimate
- Utilities (XLU), Consumer Staples (XLP) weak
- Are “safety plays” rolling over amid a strong economy after bear-market rally?
Bonds under pressure as economic data, auctions approach
- WSJ: Liquidity drying up
- Is Trump in a Catch-22 demanding weak dollar and low rates?
- Foreign central banks often buy Treasuries to support greenback
- Click here for special report on bonds
China showing signs of fatigue
- Yuan weakest against U.S. dollar in 12+ months
- PBoC record liquidity injection overnight raises eyebrows at FT, Bloomberg.
- Fiscal stimulus increasing as economy slows, trade worries hurt confidence.
- Commodities, other emerging markets (EEM) could be at risk.
- iShares Brazil ETF (EWZ), Petrobras (PBR) have strong options liquidity.
- Semiconductors/Chips (SMH) at risk from China slowdown.
Charts to watch
- BTCUSD trying to break downtrend
- Nutanix (NTNX) in tight range near 50-day MA
- RH (RH) pulls back after strong earnings report
- Weight Watchers (WTW) near 50-day MA
- XLP, XLU at risk of rolling over.
- Oil (@CL) unclear but has commodity/global-growth risk. XLE struggling.
- Will airlines follow Transports higher if oil drops?