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Market Rap 05/31/22 by CTG

ES Futures 5 days, hourly candles S&P futures consolidating the big move from Friday, after first continuing higher in yesterdays Memorial Day futures session 4202.25 the futures high from yesterday

4121.50 the futures low from earlier this AM

SPY 3 months, daily candles The daily bounce saw big follow thru on Friday as we pushed thru more near term resistance. Daily uptrend/weekly downtrend in play. (resistance)

415.38 the high from Friday

419-420 area some heavier volume profile resistance comes into play

425

426.54 the declining 50 day MA (blue line)

429.66 (support)

407.70 the low from Friday

407.04 small gap left behind

402.05 the daily 12ema (white line)

398.45

386.96 the last daily "higher low" - anything above there once daily consolidation of this move begins keeps the uptrend intact on this timeframe

SPY 3 year, weekly candles Weekly bounce finally underway, looking for a weekly "lower high" anywhere under 462.07, in the context of a weekly downtrend. Whenever this current move does top out, bulls will also look for a weekly "higher low" anywhere above recent lows (380.54), so they can make an attempt to change the trend on this timeframe as well.

NQ futures 5 days, hourly candles Nasdaq futures here seeing similar action as the S&P - pushed thru Fridays highs yesterday, during the Memorial Day futures session; Seeing consolidation of the last 2 trading days of action currently, as it pulls back into Fridays RTH range

QQQ 3 months, daily candles Daily bounce continues to show strength here as we push thru recent resistance. Daily uptrend/weekly downtrend currently in play. (resistance)

309.25 the high from Friday

315.09 after that

317-320 volume profile resistance gets heavier(support)

302.42 the low from Friday

300.92 small open gap

298.54 the daily 12ema (white line)

290.15 next major support

282.25 the last daily "higher low" - bulls will look to pivot anywhere above there once consolidation of this move begins on this timeframe

June Vix futures 3 months, daily candles Fridays action saw a break of the recent May lows here; Today we're pushing back above that area as we see some consolidation in the indices

Spot Vix 3 months, daily candles Different look here as this held up above the May lows on Friday, now getting its daily bounce underway as the broad indices consolidate. Currently trading in the 27-28 area, which is still very elevated - wide moves and ranges should still be expected, both directions.

Crude oil breaking thru recent resistance, only the highs from early March remain

https://www.briefing.com/stock-market-update A macro focus 31-May-22 07:59 ET Market is Closed [BRIEFING.COM] S&P futures vs fair value: -20.00. Nasdaq futures vs fair value: -14.00. The S&P 500 futures are down 20 points and are trading 0.5% below fair value. The Nasdaq 100 futures are down 10 points and are trading 0.1% below fair value. The Dow Jones Industrial Average futures are down 222 points and are trading 0.6% below fair value. Coming off the extended Memorial Day weekend, the corporate news flow is light in terms of market-moving relevance, yet a rash of macro considerations has stirred some mixed trading interest. The biggest talking points this morning include an agreement by EU leaders to ban 90% of Russian crude oil imports by the end of the year, Shanghai engaging in more reopening efforts, record-high inflation prints for the eurozone in May, Fed Governor Waller (FOMC voter) endorsing 50 basis point rate hikes at several meetings and indicating his support for a policy rate above neutral by the end of the year, and China reporting manufacturing and non-manufacturing PMI data for May that was improved from April but still in contraction territory with sub-50 readings. President Biden plans to meet with Fed Chair Powell at the White House today to discuss the economy, but has said he will not do anything to compromise the Fed's independence in setting monetary policy. This week will be a big week for economic data, starting with the May Consumer Confidence Index today (10:00 ET) and followed by the ISM Manufacturing Index on Wednesday and the May Employment Situation and ISM Non-Manufacturing Index reports on Friday. The 10-yr note yield is up eight basis points to 2.82% and the 2-yr note yield is up nine basis points to 2.55%. The U.S. Dollar Index is up 0.3% to 101.93. WTI crude futures, in response to the EU decision on Russian crude oil imports, are up 3.1% to $118.62/bbl. In corporate news:

  • Yamana Gold (AUY 5.98, +0.81, +15.7%): to be acquired by Gold Fields (GFI) for $6.7 bln in stock

  • CatchMark Timber Trust (CTT 11.18, +2.88, +34.7%): to combine with PotlatchDeltic (PCH) in an all-stock transaction currently valued at $12.88 per share

  • Zoom Video (ZM 112.01, +1.59, +1.4%): Daiwa double upgrades to Outperform from Underperform n economic data:

  • Eurozone's May CPI 0.8% m/m (expected 0.6%; last 0.6%); 8.1% yr/yr (expected 7.7%; last 7.4%). May Core CPI 0.5% m/m (last 1.0%); 3.8% yr/yr (last 3.5%) EU leaders agreed in principle to reduce the imports of Russian oil by about 90% over the next six months.

  • Dutch Prime Minister Rutte said that agreeing to another set of sanctions on Russia would be difficult while Austrian Chancellor Nehammer said that imports of Russian natural gas should not be sanctioned.

  • EU's CPI accelerated to a fresh record of 8.1% in May.

President Biden is scheduled to meet later today with Fed Chairman Jerome Powell, who was formally sworn in last week for a second term as head of the U.S. central bank. The rare meeting at the Oval Office will focus on inflation and the state of the economy, as prices continue to soar on everything from gasoline and food to transportation and housing. While the Fed has embarked on a cycle of aggressive rate hikes and trimming its massive balance sheet, many have criticized the central bank for being too slow in addressing the price pressures, while others say moving too severely could trigger a recession (or that the U.S. economy is already in one).

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