|Day's range||6,933.56 - 7,149.13|
|52-week range||6,011.24 - 7,700.56|
Based on Monday’s close at 7155.25 and the early price action, the direction of the December E-mini NASDAQ-100 Index futures contract on Tuesday is likely to be determined by trader reaction to the short-term pivot at 7138.25.
U.S. Treasury yields fell on Monday as lingering concerns over stock market volatility held rates in check. Sharp sell-offs in U.S. equity markets tend to drive investors into the safe-haven U.S. Treasury market, putting pressure on interest rates at a time when investors fear higher rates are coming. This tends to create investor indecision, while often leading to a volatile move once the fear subsides.
Global stocks trade mostly higher on Chinese plan to support the economy. US futures set to open higher. Eyes are on earnings as the earnings cycle hits its peak.
Earlier this month, the IMF lowered its global growth forecast for 2018 and 2019 from 3.9% to 3.7%. At the beginning of the year, the IMF had raised its 2018 global economic growth forecast to 3.9% from 3.8%, calling it “the broadest synchronized global growth upsurge since 2010.” Six months down the line, while it maintained the growth forecast, it dropped the term “synchronized.” Now, even the growth forecast has been trimmed due to the trade war scare. Lower global growth isn’t encouraging for markets (QQQ).
Chinese indices add almost 4% in the morning, developing a rebound of the last Friday. Oil prices rise on US-Saudi tensions.
Based on Friday’s close at 7106.50 and the early price action, the direction of the December E-mini NASDAQ-100 Index futures contract on Monday is likely to be determined by trader reaction to the short-term pivot at 7138.25.
Proctor & Gamble surged after reporting better-than-expected earnings. The company said it got a boost from strong beauty-product sales. A report from the National Association of Realtors showed on Friday that U.S. home sales fell in September by the most in over two years as the housing market continued to struggle despite strength across the broader economy.
Thursday’s pressure began early in the session when U.S. Treasury yields traded back around multi-year highs on Thursday. The rise in yields came a day after the Fed minutes showed the central bank is still convinced tighter monetary policy is the best course of action for the economy to remain steady.
Investing.com - PayPal Holdings Inc reported third quarter earnings that missed analyst's expectations on Thursday and revenue that topped forecasts.
The gist of the minutes of the September 25-26 Federal Open Market Committee session primarily reflected confidence in the rate of economic growth. However, for the first time, the central bank did express some concern over the impact that tariffs might have on the future path of economic growth.
Crude oil prices dropped sharply on Wednesday following the release of a bearish government report. According to the U.S. Energy Information Administration, U.S. commercial crude stockpiles rose by 6.5 million barrels during the week-ending October 12. Traders were looking for a build of about 2.2 million barrels.
Based on the early price action, the direction of the December E-mini NASDAQ-100 Index on Wednesday is likely to be determined by trader reaction to the downtrending Gann angle at 7344.75. Taking out 7318.25 with conviction will indicate the selling pressure is getting stronger. The daily chart is also wide open to the downside with the next target angle coming in at 7163.75. So be prepared for an acceleration to the downside.
Americans did that again – V shape reversal after a heavy drop. Many traders get used to it but many are still surprised. The style that they are doing this is impressive and most probably scares off the potential sellers, which is an additional bullish factor here. First, let me show you the Nasdaq, which defended the round 7000 points support (green) and went higher. Another day, another dollar one could say. That reversal cancels any sell signal. ...
The rally extended after the bell with investors turning towards Netflix for guidance. After the close, Netflix reported company earnings which easily beat analyst expectations and sent shares of the video-streaming giant up more than 14 percent in after-hours trading.
Global stocks trade mostly higher on Tuesday morning. The political tension between the US and Saudi Arabia over the disappearance of Jamal Khashoggi remains in focus.
Based on the early price action, the direction of the December E-mini NASDAQ-100 Index futures contract is likely to be determined by trader reaction to the main 50% level at 7057.00.
Later this week, traders will get a chance to react to earnings from Netflix, Morgan Stanley, Johnson & Johnson, Procter & Gamble and Honeywell. Investors will be keying in on Netflix, which releases its earnings report after the close on Tuesday because this stock is one of the bellwether FANGS.
When the Fed was throwing money at the market, everyone was an “investing genius” because all you had to do was buy shares and momentum did the leg-work. However, with value investing, there is no momentum or if there is, it’s to the downside.
Rising US yields, along with the fears of a global economic slowdown have pressured global stock markets last week. Is this the start of a correction or a recession?
U.S. Treasury yields snapped back on Friday as U.S. stocks rebounded from a steep sell-off earlier in the week. The rise in yields was fueled by investors who reversed their safe-haven buys of Treasurys during the height of the stock market sell-off. Bond yields move inversely to prices.
On Thursday, U.S. President Trump said that, “It’s a correction that I think is caused by the Fed and interest rates. ”“The first two weeks of October are historically biased to the downside – they are usually cleaning up a sell-off from September. We didn’t get much of one this year, but we are still in that negative two-week period,” Cashin said on CNBC’s Closing Bell.
Based on the early price action, the direction of the December E-mini NASDAQ-100 Index on Thursday is likely to be determined by trader reaction to the value zone at 6898.50 to 6822.75. Basically, look for an upside bias to develop on a sustained move over 7057.00 and a downside bias on a sustained move under 6822.75. Trading in between these levels will create choppy trading conditions.
The technology sector was the biggest drag on both the S&P 500 Index and the Dow with the NASDAQ Composite posting is largest single day sell-off since June 24, 2016. The overall tech sector in the S&P 500 posted its worst day in seven years, falling 4.8 percent.
On Wednesday morning the markets are dominated by mixed dynamics. Political events in Europe have somewhat drawn attention from the U.S. debt markets and there is still pressure on the bonds.
Traders returned from Monday’s Columbus Day holiday by driving the yield on the benchmark 10-year Treasury note above 3.25 percent in early trading, returning to its highest level since 2011. The yield on the 30-year Treasury bond rose above 3.43 percent, its highest level since 2014.