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S&P 500 overview: Hits resistance at January downgap
- Failed breakout → Risk of bearish phase.
- SPX bearish harami on Thursday, July 26.
- Remember we’ve been up 4 straight weeks.
- 2700 may be key level on SPX: Trendline, pivot, 100DMA
Earnings in focus:
- This morning: Caterpillar (CAT)
- As we speak: KLA-Tencor (KLAC)
- 7/31: Pfizer (PFE)
- 7/31: Archer Daniels Midland (ADM)
- 7/31: Huntsman (HUN)
- Click here for last week’s earnings recap.
Glass half empty?
- Fed meeting, jobs data may kill Goldilocks. Powell ahead of the curve?
- Factset: On pace for best earnings season in terms of beating estimates since at least 2008. EPS growth rates revised up for all nine sectors.
- Stronger GDP not necessarily bullish for S&P 500.
- Tech troubles (FB, NFLX, TSLA, INTC) focus for now. No new high in chips since Jan, high-multiple software weakening.
- Mid-term elections could soon become worry.
- China checkup: Boosting fiscal stimulus as electricity consumption slows. Click here for our special report.
Options activity:
- 7/30: Procter & Gamble (PG) August 77-75 bearish put spread.
- 7/30: Tracking Apple (AAPL) diagonal spread into earnings.
- 7/26: Market Vectors Semiconductor ETF (SMH) September 100-90 bearish put spread.
- 7/24: BHP Billiton (BHP) August 55 calls → January 60 calls.
Charts to watch
- ORCL, RHT downside risk in tech.
- MNST potentially rolling over after drop.
- BABA, BIDU at risk of bigger breakdowns, but not confirmed yet.
- Refiners, energy may have most upside. Watch WLL for earnings tomorrow night, Iran news August 6.
