Morning Market Update Tuesday, July 19

Providing Market Insights and Returns

The reversal yesterday was not surprising, however, the market probably could have ended in the green if it wasn’t for AAPL’s negative outlook. Looking at the gainers early yesterday it was many of the losers YTD, in our eyes, that’s more of a bounce than anything else.  Most indicators that we look at for any signs of a bottom are not there yet. SPX can’t even close above the 25-day EMA, resistance at ~3950, and ~4170. Similar story for DOW for about 2 months the 50-day EMA has been the stopping the rallies, resistance ~33200. QQQ needs to break 50-day EMA, resistance ~300, ~315.

Futures are in the green, DOW +0.64%, S&P +0.80%, NAS+0.88%, WTI down 1.7% but still above $100, Gold slightly in the green, 10s up @2.97%. Both Europe & Asia markets are mixed. Earnings are still the main thing on people’s minds today with IBM down over 5% after signaling some warnings. Everyone will be watching NFLX’s print this afternoon, the question is whether good numbers can get them out of their funk. Housing and building data out @ 8:30.

What are we watching:

  • Still watching the gas pipeline – Gazprom said it cannot meet some contracts in Europe, not surprising that Russia is weaponizing its Nat Gas
  • China owns less than $1T of US debt, first time in years it’s this low
  • Curious what will come of Biden’s trip to Saudi Arabia – probably not much more