Market Rap 03/03/23 by CTG
SPY / QQQ / Vix
SPY 5 days, hourly candles S&P futures saw a brief push thru yesterdays highs; now seeing some consolidation, after hourly RSI clicked into overbought territory 399.40 the pre mkt high
396.75 the corresponding futures low
SPY 3 months, daily candles After a brief pierce thru the 200 day MA(purple) the bulls finally showed some life and reversed; bullish engulfing candle went in by the close, along with a push above/close above the 50 day MA(blue). Daily 12ema(white) and daily "lower high" resistance overhead, in the context of the daily downtrend/weekly uptrend. (resistance)
398.69 the high from yesterday
400.42 that daily 12ema
401.29 the last daily "lower high" and spot for bulls to get over, with some follow thru, to break the downtrend (support)
397.10 the 50 day MA
393.80 the 150 day MA(orange)
393.12 the 200 day MA
392.33 the low from yesterday
Nasdaq futures also saw a brief push thru yesterdays highs, and paused just ahead of the hourly RSI getting overbought; seeing consolidation of that move currently
QQQ 3 months, daily candles Bullish engulfing candle yesterday here as well, off the 150 day MA(orange)/200 day MA(purple). Daily 12ema(white) and daily "lower high" resistance the next test for the bulls.(resistance)
294.43 the high from yesterday
295.77 that daily 12ema (white)
296.12-296.49 after that (support)
290.05 the 200 day MA
289.05 the 150 day MA
288.37 the low from yesterday
March Vix futures 3months, daily candles After failing to pivot and turn back up, this reversed lower yesterday; Seeing follow thru today back down to recent lows, as the end of week vol crush takes hold
Spot Vix 3 months, daily candles Bearish engulf candle here yesterday, along with a break below that 20 psyche level
TLT daily and weekly candles A break below important weekly support yesterday, but a close back above. Starting off strong so far today, so maybe a quick look lower below support and move back the other way in play. Watching to see how the weekly candle closes.
[BRIEFING.COM] S&P futures vs fair value: +11.00. Nasdaq futures vs fair value: +25.00.The S&P 500 futures are up 11 points and are trading 0.3% above fair value. The Nasdaq 100 futures are up 27 points and are trading 0.2% above fair value. The Dow Jones Industrial Average futures are up 76 points and are trading 0.2% above fair value.
There's a positive disposition in the equity futures market this morning, supported in large part by falling Treasury yields. There is also some technical buying interest boosting the broader market after the S&P 500 found support at its 200-day moving average (3,940) yesterday. Early strength in mega cap space is also helping to boost the futures trade.
The 2-yr note yield is down five basis points to 4.87% and the 10-yr note yield is down six basis points to 4.02%.
Market participants received some supportive economic data overnight, including China's stronger than expected February Caixin Services PMI and cooler than expected January PPI for the Eurozone.
Today's U.S. economic data includes the February IHS Markit Services PMI - Final (prior 50.5) at 9:45 a.m. ET and the February ISM Services PMI (Briefing.com consensus 54.5%; prior 55.2%) at 10:00 a.m. ET.
In corporate news:
Hewlett Packard Enterprise (HPE 15.82, +0.32, +2.1%): beats by $0.10, beats on revs; guides Q2 EPS in-line, revs above consensus; guides FY23 EPS mostly above consensus; reiterates long-term ARR guidance of +35-45% annualized; acquires Axis Security, a cloud security provider; financial terms were not disclosed
ChargePoint (CHPT 9.90, -1.36, -12.1%): beats by $0.03, misses on revs; guides Q1 revs below consensus
Zscaler (ZS 118.89, -15.24, -11.4%): beats by $0.08, beats on revs; guides AprQ EPS above consensus, revs above consensus; guides FY23 (Jul) EPS above consensus, revs above consensus; sees FY23 calculated billings of 1.935-1.945 billion
Dell (DELL 39.00, -1.17, -2.9%): beats by $0.16, beats on revs; increase dividend by 12%; also names new CFO; projects Q1 (Apr) and FY24 (Jan) earnings and revs below consensus; remains committed to a long-term revenue CAGR of +3-4% and EPS CAGR of +6% plus
Marvell (MRVL 42.44, -3.79, -8.2%): misses by $0.01, reports revs in-line; guides Q1 EPS below consensus, revs below consensus
C3.ai (AI 24.77, +3.46, +16.2%): beats by $0.16, beats on revs; guides Q4 revs above consensus; guides FY23 revs above consensus; on track to become non-GAAP profitable by end of FY24 (Apr)
Broadcom (AVGO 608.56, +9.91, +1.7%): beats by $0.17, reports revs in-line; guides Q2 revs above consensus
Costco (COST 475.53, -10.16, -2.1%): beats by $0.10, reports revs in-line, adj. comparable sales growth of +6.8%
Bumble (BMBL 23.07, -1.47, -6.0%): prices secondary offering of 13,750,000 shares of common stock by certain selling stockholders at $22.80 per share
Procter & Gamble (PG 141.38, +1.45, +1.0%): upgraded to Overweight from Neutral at JP Morgan
Apple (AAPL 147.44, +1.53, +1.1%): Morgan Stanley reiterated Overweight rating