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Market Rap 06/06/22 by CTG

SPY / QQQ / Vix

SPY 5 days, hourly candles S&P futures have pushed over Friday's RTH highs, and are trading in the middle of the futures range from Thurs/Fri 410.16 the after hours low from Friday afternoon

415.45 the corresponding futures/pre mkt high so far

SPY 3 months, daily candles Inside bar day Friday, potential daily bull flag; the bulls are successfully defending the 12ema (white line) so far. Daily uptrend/weekly downtrend still in play. (resistance)

414.04 the high from Friday

417.44 next

419ish heavier volume profile begins

423.90 the 50 day MA (blue line) (support)

409.51 the low from Friday

407.20 the 12ema

407.04 last Thursdays low and the spot needed to keep the daily bull flag a possibility

398.45 next

QQQ 5 days, hourly candles Nasdaq futures held Fridays lows and bounced, testing the RTH highs from Friday currently, and trading in the middle of the futures range from Thurs/Fri 305.67 the corresponding futures low

310.93 the corresponding futures high so far

QQQ 3 months, daily candles Inside bar day Friday, bulls defending the daily 12ema (white line) so far. Daily bull flag potential. Daily uptrend/weekly downtrend still in play. (resistance)

310.47 the high from Friday

314.56 next

317ish heavier volume profile starts to come in

325.01 the 50 day MA (blue line) (support)

304.92 the low from Friday

303.51 the 12ema

303.40 next, and the spot needed to keep the daily bull flag possibility

300.92 small open gap

290.15 after that

IWM 15 days, 4hr candles and 3 months, daily candles Gap up open over last week's highs here, and primed to test it's 50 day MA (blue line - 190.66) - the last time it was around it's 50 day was back in April


June Vix futures 3 months, daily candles Fridays attempt to get it's daily bounce underway was quickly reversed, now back to testing the lows from last week. Daily bear flag possibility if it stays under the 26.70-27ish area.

Muted action here to end last week, still trading under the lows from May and unable to get any bounce going so far. Mid 20s is still a historically elevated level of volatility though, so bigger moves and ranges both directions shouldn't be a surprise. Not quite as wild as the 30s we saw most of May, however.

https://www.briefing.com/stock-market-update S&P futures vs fair value: +46.00. Nasdaq futures vs fair value: +184.40.The S&P 500 futures are up 45 points and are trading 1.1% above fair value; the Nasdaq 100 futures are up 186 points and are trading 1.5% above fair value; and the Dow Jones Industrial Average futures are up 284 points and are trading 0.9% above fair value. There is a nice bid in the futures market to begin the week. Market participants have been heartened by news reports indicating COVID restrictions in China's largest cities are being rolled back. Also, there is a buzz around many Chinese-listed stocks following a report that Chinese regulators are ending their probe of Didi (DIDI). There is also some reporting that suggests the Biden Administration is considering lifting tariffs on some imported Chinese goods. Separately, there is a nice rebound bid in Tesla (TSLA) after Elon Musk clarified that the company total headcount will increase, but that salaried positions should be fairly flat. That update has taken off some of the edge from his remark last Friday discussing employment at Tesla and his "super bad feeling" about the economy. There is no economic data of note out of the U.S. today. The 10-yr note yield is unchanged at 2.96%. WTI crude futures, which topped $120.00/bbl overnight, are up 0.1% to $118.96/bbl. In corporate news:

  • Tesla (TSLA 721.25, +17.70, +2.5%): Jumps after Elon Musk tweets, "Total headcount will increase, but salaried should be fairly flat"

  • Apple (AAPL 147.15, +1.77, +1.2%): Moving up in front of Worldwide Developers Conference today

  • Spirit Airlines (SAVE 21.80, +1.06, +5.1%): JetBlue (JBLU) raises bid to acquire airline to $31.50/sh cash

  • Amazon.com (AMZN 2447.00): 20-for-1 stock split takes effect today

  • Didi (DIDI 2.89, +1.04, +56.2%): Reports indicate Chinese regulators are ending their probe of the company Bank of Japan Governor Kuroda said that Japan is not in position to tighten monetary policy and that easing will continue persistently.

  • Beijing reportedly lifted more coronavirus restrictions.

  • China Securities Journal expects a rebound in new loans for May.


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