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July 26 Market Update | Technical, Fundamental, News

July 26 Market Update | Technical, Fundamental, News

Description:

An analysis for the week ahead.

Points of Interest:

Prior-Balance; Weak Highs and Lows; Dull, Emotional Participation; Nasdaq Weakness; Financials Intact.

Technical:

Broad-market equity indices struggled to hold onto recent gains, evidenced by the failed continuation higher.

Recapping last week’s action, on Monday, after a good amount of volatility contraction, the S&P 500 opened inside prior balance and tested lower, before rotating higher, into the gap zone left from the late February sell-off. Pre-open, on Tuesday, the market rallied, further discovering prices up into the gap zone. After the U.S. cash open, Tuesday’s activity was reminiscent of rebalancing to recent overextension.

On news that China would react to the closure of its consulate in Houston, Texas, Wednesday’s session saw prices push lower overnight, before turning and balancing out higher, into the close. On more news regarding geopolitics and initial jobless claims turning higher, Thursday’s session experienced a news-driven, emotional liquidation, with the Nasdaq leading lower.

Friday’s session opened near a high-volume area, balancing out and trading responsively, before closing and accepting prices lower.

Looking beyond broad market indices, the innovation-driven, technology-based sectors are showing signs of relative weakness, while other sectors, such as industrials , energy, and financials are finding more support.

Overall, the S&P is in balance. Absent positive news regarding geopolitical tensions, monetary policy , a vaccine, earnings , and stimulus, the market may find itself correcting through time, testing as low as the prior balance area, below $3,180, as more impactful earnings are released.

Scroll to bottom of document for non-profile charts.

Key Events:

Earnings ; Durable Good Orders; Consumer Confidence; Initial Claims; GDP; Personal Income ; Personal Spending; Employment Cost Index; Consumer Sentiment.

Fundamental:

Big tech antitrust probe report form Congress expected early fall. https://reut.rs/2D6h7xl

Nasdaq Composite , tech weakness comes alongside a weaker dollar. https://bit.ly/2Eh56Wl

5 charts illustrating U.S. economic trends amid the coronavirus pandemic. https://cnb.cx/3hGkFFo

General Motors Company (NYSE: GM ), Volkswagen AG (OTC: VWAGY ), Nissan Motor Co Ltd (OTC: NSANY ) charge ahead with electric-vehicle plans. https://on.wsj.com/2WWxELx

Consulate closures mark escalation between U.S., China. https://reut.rs/3hPLRlx

Boeing Co (NYSE: BA) to delay 777X as demand drops for big jets. https://fxn.ws/3f28z83

Intel Corporation (NASDAQ: INTC ) shares dive on manufacturing retreat. https://reut.rs/3f26ngP

American Express Company (NYSE: AXP ) warns of slow spending recovery. https://reut.rs/302YwuY

Inflation-adjusted bonds are currently priced for very low inflation . https://bit.ly/3hCGW77

Proposal to suspend certain payroll taxes is a high priority. https://bit.ly/2ZZkMWQ

U.S. home prices, existing home sales rise toward records. https://bit.ly/2ZZkMWQ

Tesla Inc (NASDAQ: TSLA ) chose Texas for the new Cybertruck factory. https://reut.rs/3jRNh0C

FDA orders unauthorized e-cigarettes removed from the market. https://bit.ly/301povx

China’s regulators take over insurers, financial institutions to cut risks. https://bit.ly/301povx

Supplemental unemployment benefits expire alongside new stimulus efforts. https://bit.ly/2X0zRpf

Housing strengthens while mortgage forbearance continues to decline. https://bit.ly/2X0zRpf

Biden may enact higher taxes, climate reform, and increased health care spending. https://bit.ly/32RF9XQ

EU leaders have agreed on an $860 billion stimulus package. https://bit.ly/32RF9XQ

Earnings beat expectations, but fundamentals remain weak. https://bit.ly/32RF9XQ

Commercial real estate market slips despite Federal Reserve action. https://bit.ly/32RF9XQ

The face value of defaulted non-financial corporate bonds jumped to a record. https://bit.ly/30NAX8X

American Airlines Group Inc (NASDAQ: AAL), United Airlines Holdings Inc (NASDAQ: UAL ) to lay off workers. https://bit.ly/3f5LnWm

Dell Technologies Inc’s (NYSE: DELL) VMware spin-off increases uncertainty. https://bit.ly/30OwNgP

U.S. global investment banks preserved capital strength in Q2 amid credit provisions. https://bit.ly/30OwNgP

UnitedHealth Group Inc’s (NYSE: UNH ) earnings , lower leverage is credit positive. https://bit.ly/30OwNgP

Sentiment: 26.1% Bullish , 27.1% Neutral, 46.8% Bearish as of 7/22/2020. https://bit.ly/330VhEp

Gamma Exposure: (Trending Lower) 1,281,189,859 as of 7/26/2020. https://bit.ly/2UpgtRE

Dark Pool Index: (Trending Lower) 42.9% as of 7/26/2020. https://bit.ly/2UpgtRE

Product Analysis:

S&P 500 (ES):

AMEX:SPY TVC:SPX
Nasdaq 100 (NQ): NASDAQ:QQQ TVC:NDX
Russell 2000 (RTY): AMEX:IWM TVC:RUT
Gold ( GC ): AMEX:GLD AMEX:GDX
Crude Oil ( CL ): AMEX:USO AMEX:DBO AMEX:USL
Treasury Bonds (ZB): NASDAQ:TLT

Disclaimer:

This is a page where I look to share knowledge and keep track of trades. If questions, concerns, or suggestions, feel free to comment. I think everyone can improve, especially me.

In no way should this post be construed as investment advice.

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