Market Rap 08/22/22 by CTG
SPY / QQQ / Vix
SPY 5 days, hourly candles Bears keep the pressure up to start the week with a big flush of Fridays lows and a gap down open ahead. Hourly and 4hr RSI is oversold here so watching for a relief bounce in the short term. 416.77 the pre mkt low so far
421.25 the corresponding futures high
SPY 3 months, daily candles Daily consolidation continues; Held above the 12ema (white line) on Friday, but we're well below that level here in pre mkt as we set up for the gap down open. (support)
421.22 the low from Friday - well below that level currently for the gap down ahead
416.72 the top of the daily gap from 8/9-8/10
412.75 fills that gap
409.60 the last daily "higher low" after that - bulls are looking to pivot anywhere above that level to keep the uptrend on this timeframe intact (resistance)
425.26 the high from Friday
425.50 small gap left open
QQQ 5 days, hourly candles Bears growling in futures action here too, with a deep flush below Fridays lows. Hourly RSI really beat up here, with 4hr RSI oversold as well. 317.68 the pre mkt low
322.10 the corresponding futures high
QQQ 3 months, daily candles Break of the daily 12ema (white line) here on Friday, as the bears show some fight for the first time in a month. Daily "higher low" area test approaching as bulls will look to play defense above that level in order to maintain the daily uptrend. (support)
322.08 the low from Friday - well under that currently for the gap down open ahead
315.42 that previous daily "higher low" - bulls need to defend that area if they're going to keep the daily uptrend intact. (resistance)
326.84 the high from Friday
$DXY 3yr, weekly candles Marching up to test the multi year highs we hit in July before cooling off
Sept Vix futures 3 months, daily candles Friday finally saw the first bounce with conviction here in awhile; Getting follow thru today
Spot Vix 3 months, daily candles Spot Vix finally showing some conviction as well, after a tepid bounce/back off at recent "resistance" Friday.
24.68 the next major pivot area from early August.
XLE 5 days, hourly candles Going the opposite way of the broad market indices
https://www.briefing.com/stock-market-update [BRIEFING.COM] S&P futures vs fair value: -48.30. Nasdaq futures vs fair value: -212.90.The S&P 500 futures are down 46 points and are trading 1.2% below fair value. The Nasdaq 100 futures are down 194 points and are 1.6% below fair value. The Dow Jones Industrial Average futures are down 302 points and are trading 0.9% below fair value. Futures for the major indices indicate a lower open with market participants still feeling the market is due for a consolidation period after getting ahead of itself with recent gains. There is some anxiousness in play this morning ahead of the Jackson Hole Fed symposium this week with Chairman Powell set to speak on Friday. In other central bank news, European Central Bank policymaker Nagel said that the ECB must keep raising rates regardless of a risk of recession. On the flip side, the People's Bank of China lowered its one-year loan prime rate by five basis points to 3.65% and the five-year loan prime rate was lowered by 15 bps to 4.30%. WTI crude oil futures are down 0.1% to $90.40/bbl. Natural gas futures are up 4.8% to $9.78/mmbtu. Unleaded gasoline futures are down 0.4% to $3.00/gal. Treasury yields are mixed with the 2-yr note yield up one basis point to 3.26% while the 10-yr note yield is down one basis point to 2.97%. In corporate news:
DocuSign (DOCU 63.01, -2.91, -4.41%): downgraded to Sector Perform from Outperform at RBC Capital Mkts
Netflix (NFLX 234.10, -7.06, -2.93%): downgraded to Sell from Hold at CFRA; price target cut to $238 from $245.
AMC Entertainment (AMC 12.45, -5.57, -30.91%): new APE shares supposed to start trading at NYSE today.
Signify Health (SGFY 29.51, +8.31, +39.20%): press reports suggest Amazon (AMZN), UnitedHealth (UNH), and CVS (CVS) all aiming to acquire SGFY.
Tesla (TSLA 871.00, -19.00, -2.13%): CEO Elon Musk tweets "After wide release of FSD Beta 10.69.2, price of FSD will rise to $15k in North America on September 5th. Current price will be honored for orders made before Sept 5th, but delivered later"