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Market Rap 05/17/22 by CTG

SPY / QQQ / Vix

S&P futures broke out over the recent range early this AM 407.87 the corresponding futures high

399 the after hours low from yesterday, before futures opened SPY 3 months, daily candles Daily bounce set to continue after some indecision yesterday, test of the 12ema (white line) on tap as we shape up for the gap up open (resistance)

403.97 the high from yesterday, trading well above there currently for the gap up open set up

406.54 the daily 12ema

414.80 after that and where volume profile starts to get heavier (support)

397.60 the low from yesterday

395.61 after that

385.15 the recent low

QQQ 5 days, hourly candles Nasdaq futures pushed thru yesterdays highs, testing the highest levels we've seen in the past week currently 305.73 the corresponding futures high

297.95 the after hours low from yesterday, before futures opened

QQQ 3 months, daily candles Inside bar day from yesterday breaking bullish in futures action, as the daily bounce looks set to continue (resistance)

302.26-303 the highs from the past 2 days, trading over both those levels now for the gap up open set up

305.76 next

306.36 the daily 12ema (white line)

315ish next and where the volume profile thickens, spot we broke down from recently (support)

297.13 the low from yesterday

294.08 next

284.94 the recent low

June Vix futures 3 months, daily candles Continuation of the vol crush that started last week - 26.82 the recent low from 5/4, heading into a test of that area currently

Spot Vix 3 months, daily candles Back in the mid 20s here as the wide ranges in the broad market indices have calmed some the past few days. 24.94 the low from 5/4, heading into a test of that level now.

10 yr 1 min up overnight


weekly

DXY 3 down days in a row

daily back in the LT channel

zoomed out


% of stocks above the 200day curled up daily

weekly

% of stocks above the 50 day


Call Volume


Put/Call ratio


Gasoline futures

daily

monthly

https://www.briefing.com/stock-market-update Futures rise in front of retail sales report 17-May-22 07:58 ET Market is Closed [BRIEFING.COM] S&P futures vs fair value: +66.70. Nasdaq futures vs fair value: +238.00. The S&P 500 futures are up 67 points and trade 1.7% above fair value amid dip-buying activity, including in some of the beaten-down mega-caps. The tech-heavy Nasdaq 100 futures trade 1.9% above fair value. Risk sentiment has also been supported by positive earnings results and guidance from Home Depot (HD 306.00, +10.01, +3.4%), an improved unit revenue outlook for Q2 from United Airlines (UAL 45.50, +1.96, +4.5%), and yesterday's news of Shanghai planning to relax COVID restrictions. Hong Kong is also planning to relax restrictions. Walmart (WMT 138.28, -9.93, -6.7%), however, has dropped 7% in pre-market action on mixed earnings results/guidance in addition to an observation of changes in consumer behavior due to inflation. Investors will get another update on the consumer through the Retail Sales report for April (Briefing.com consensus 0.9%) at 8:30 a.m. ET. Also on the market's radar is Fed Chair Powell's conversation at a Wall Street Journal event at 2:00 p.m. ET. Industrial Production (Briefing.com consensus 0.5%) and Capacity Utilization (Briefing.com consensus 78.6%) data for April will be released at 9:15 a.m. ET, followed by Business Inventories for March (Briefing.com consensus 1.9%) and the NAHB Housing Market Index for May (Briefing.com consensus 75) at 10:00 a.m. ET. The Treasury market has softened up amid the rebound-minded bias in the futures market. The 2-yr yield is up four basis points to 2.62%, and the 10-yr yield is up four basis points to 2.92%. The U.S. Dollar Index is down 0.8% to 103.30. WTI crude futures are up 1.0% to $115.34/bbl.

In U.S. Corporate news:

Home Depot (HD 306.89, +10.01): +3.4% after beating top and bottom-line estimates and guiding FY23 EPS and revenue above consensus.

  • Walmart (WMT 138.28, -9.93): -6.7% after missing EPS estimates on above-consensus revenue, lowering its FY23 EPS guidance, and observing consumer "behavior changes" due to inflation. WMT guided Q2 revenue above consensus and raised its FY23 sales guidance.

  • United Airlines (UAL 45.50, +1.96): +4.5% after noting that the demand environment has continued to improve, resulting in a higher unit revenue outlook for Q2.

  • Twitter (TWTR 36.55, -0.84): -2.3% after Elon Musk said the TWTR deal "cannot move forward" until he gets information on percentage of fake accounts.

Reviewing overnight developments:

  • Equity indices in the Asia-Pacific region ended Tuesday on a higher note. Japan's Nikkei: +0.4% Hong Kong's Hang Seng: +3.3% China's Shanghai Composite: +0.7% India's Sensex: +2.5% South Korea's Kospi: +0.9% Australia's ASX All Ordinaries: +0.3%


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