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Morning Market Rap 02/02/22 by CTG

SPY / QQQ / Vix

SPY 5 days hourly candles (and 4hr candles) Futures continued the upward momentum overnight, setting up for a gap up open. Hourly RSI has been hanging out in overbought territory, and 4hr is starting to push overbought. Gap ups are for selling? Or is the "bear market" over?

On any consolidation, anything above yesterday's low keeps the hourly uptrend intact and the bulls in control. 457.01 the corresponding futures high so far

452.91 the after hours low, before futures opened

SPY 3 months, daily candles Daily uptrend continuation yesterday, with a push and close above the 150 day MA as the daily RSI pushes further off that deep oversold condition we saw last week. 453.63 the high from yesterday - trading well above there currently for the gap up open. With hourly and 4hr RSI's overbought, gap ups are for selling?

458.74-459.96 next resistance area

461.68 the 50 day MA 450.73 the 150 day MA

447.39 the daily 12ema

446.94 the low from yesterday and first support - stay above there and bulls keep the hourly uptrend and full short term control

442.77 the 200 day MA

QQQ 5 days, hourly candles (and 4hr candles) Nasdaq futures continuing the push upward after the Google earnings/share split news. Hourly hanging out in overbought territory, and the 4hr RSI has gotten there as well, as we push into next resistance. Anything above 361.39 is an hourly higher low here though, if we do see consolidation.

Anything above 359.14 (yesterdays low) is a 4hr higher low. Bulls defend those levels, they keep full short term control. 372.05 the corresponding futures high

365.33 the after hours low, before futures opened

QQQ 3 months, daily candles Daily uptrend continuation yesterday with a test of the 200 day MA - Gap up open over that level setting up here in pre mkt 366.19 the high from yesterday, trading well above there currently for the gap up open. With hourly and 4hr RSI now heated in overbought territory, seems like a decent gap up for selling, trimming etc.

373.87-376.22 next resistance area

376.03 the 150 day MA

384.14 the 50 day MA 359.14 the low from yesterday and first support on this timeframe, with anything above there keeping the 4hr uptrend intact, if we do see some consolidation.

351.52 next

IWM 3 months, daily candles Slightly broke the highs from 1/26 Fed day here, watching for any follow thru today. Pre mkt setting up for a small gap up over yesterdays level.

Hourly and 4hr RSI not as overbought as we're seeing on QQQ, SPY.

IWM hourly and 4hr look

Feb Vix futures 3 months, daily candles Vix crush continues here, and yesterday we broke the 78.6% retrace of the massive January move, with some follow thru today. Between here and the 100% retrace, we shouldn't be surprised to see a little vol tremor and some snapback. In the very short term it's a bit extended to the downside, with SPY and QQQ short term extended to the upside.

Spot Vix 3 months, daily candles Heading into a test of the 20 psychological level. A full retrace of the January move would ultimately get us to the 17-18ish area. Pushing into "oversold" territory in the very short term.

Alphabet leads futures market higher on pleasing earnings news

02-Feb-22 07:57 ET

Market is Closed

[BRIEFING.COM] S&P futures vs fair value: +45.20. Nasdaq futures vs fair value: +242.30.

The S&P 500 futures trade 45 points, or 1.0%, above fair value as Alphabet (GOOG 3057.20, +299.63, +10.9%) leads the extended rebound effort following its better-than-expected earnings report. The Nasdaq 100 futures outperform and trade 1.6% above fair value.

Shares of Alphabet, which also announced a 20-for-1 stock split, are up more than 10% ahead of the open. Advanced Micro Devices (AMD 131.54, +14.76, +12.6%) is, too, after beating top and bottom-line estimates and guiding FY22 revenue above consensus.

Earnings remained generally better than expected, although PayPal (PYPL 145.96, -29.84, -17.0%) and Starbucks (SBUX 96.09, -2.67, -2.7%) are down 17% and 3%, respectively, after missing EPS estimates and providing downside guidance. Both companies cited the inflationary environment as a persistent headwind.

The Treasury market, meanwhile, remains more reserved. The 2-yr yield is up one basis point to 1.17%, and the 10-yr yield is down two basis points to 1.78%. The U.S. Dollar Index is down 0.5% to 95.88. WTI crude futures are up 0.1% to $88.25 in front of an OPEC+ decision and inventory data from the EIA (10:30 a.m. ET).

In other data, investors will receive the ADP Employment Change report for January ( consensus 220,000) at 8:15 a.m. ET. Earlier, the weekly MBA Mortgage Applications Index rose 12.0% following a 7.1% decline in the prior week.

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