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Market Rap 05/23/22 by CTG

SPY / QQQ / Vix

SPY 5 days, hourly candles S&P futures testing Friday's highs 395.18 the corresponding futures high

391 the corresponding futures low

SPY 3 months, daily candles Friday's double bottom break of recent support saw a quick reversal at the end of the day, creating a new must hold level for bulls, or we'll be looking at lower levels of support again (support)

380.54 the low from Friday (resistance)

397.03 the high from Friday

400.27 the 12ema

403.80 after that

408.57 the most recent "lower high"

QQQ 5 days, hourly candles

Nasdaq futures testing the upper end of Fridays range as well

293.34 the corresponding futures high

289.40 the corresponding futures low

QQQ 3 months, daily candles Same story here as the S&P, a nasty break of recent support followed by an end of day reversal. Bulls looking for some follow thru today, or at the minimum needing to defend Fridays lows and maintain a daily inside bar (support)

280.21 (resistance)


299.76 the 12ema

302.25 next

306.56 the last daily "lower high"

June Vix futures 3months, daily candles Inside bar within Fridays range so far today, still very elevated and prone to big moves itself; in turn we should expect wide ranges and movement, both directions, in the broad market

Spot Vix 3 months, daily candles Tight range so far today, within Fridays much wider range of about 5 points. Broad market bulls will want this to stay under the 30 level; if we get some follow thru under Friday's low of 28.06 we'd expect to see some continuation of the broad market reversal we saw late Friday afternoon Poised for "risk on" start 23-May-22 08:00 ET Market is Closed [BRIEFING.COM] S&P futures vs fair value: +39.00. Nasdaq futures vs fair value: +74.00.The S&P 500 futures are up 36 points and are trading 1.0% above fair value as the late-day rally effort on Friday, which helped the S&P 500 escape from bear market territory, has carried over this morning. In the same vein, the Nasdaq 100 futures are up 76 points and are 0.6% above fair value while the Dow Jones Industrial Average futures are up 293 points and are trading 1.1% above fair value. The positive leaning this morning will be deemed a "risk-on trade," as most stocks are expected to benefit from the improved sentiment. In effect, this is more of a relief trade on the idea that things didn't unravel Friday after the S&P 500 fell more than 20% from its January high. Instead, buyers stepped up to defend prices, fostering some hope that the market could be poised for an overdue, and meaningful, rebound bid. Reports that Broadcom (AVGO) is talking about a possible acquisition of VMWare (VMW), and that Electronic Arts (EA) is looking for a sale or merger, has helped contribute to the positive bias. Additionally, some weakening in the dollar, which stems from ECB President Lagarde teasing the prospect of exiting negative rates by the end of Q3, and an acknowledgment from President Biden that he is considering lifting some Chinese tariffs to help ease inflation pressures, have also aided the buying interest. The 10-yr note yield is up four basis points to 2.83%. The U.S. Dollar Index is down 0.9% to 102.20. WTI crude futures are 0.7% to $111.08/bbl. In U.S. Corporate news:

  • VMWare (VMW 117.40, +21.69, +22.7%): rallying on Bloomberg report that Broadcom (AVGO) is in talks to acquire the company

  • Electronic Arts (EA 135.10, +4.34, +3.3%): According to news site Puck, company is looking for a merger partner or possible sale

  • Eli Lilly (LLY 303.66, +4.81, +1.6%): SVB Securities initiates coverage with Outperform rating

  • Autodesk (ADSK 184.36, -7.05, -3.7%): Deutsche bank downgrades to Hold from Buy

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