|Day's Range||7,011.6904 - 7,061.6724|
|52 Week Range||5,316.0200 - 7,186.0898|
The US stock markets were negative during the week, but still remain well within tolerated ranges of the uptrend. However, there are a couple of areas it could offer a bit of interest, so pay attention as we go forward.
Based on the early trade, the direction of the index is likely to be determined by trader reaction to the steep downtrending Gann angle at 7086.50.
5 Year Daily Chart of the VX futures shows that as long as the VX futures remain over $16.28, the equity index futures will be weak. For The Emini S&P (ES), as long as we stay below 2783.50, we are in a short setup for the S&P. The morning price action today may likely try a run-up into the initial resistance zone in the 2763.50 area and even into the secondary resistance line to about 2772.75 and this has been the usual practice in recent days, attempt a move up and fail to support levels.
Based on the early trade, the nearest upside target is a steep uptrending Gann angle at 7188.00. Overtaking this angle will put the index in a position to challenge 7214.50.
The direction of the index the rest of the session is likely to be determined by momentum and today, there doesn’t seem to be enough upside momentum in the market to sustain the intraday rally.
The US stock markets rallied during the week, especially on Friday once we had jobs number coming out hotter than anticipated. The market looks likely to continue to go higher, especially if you pay attention to the NASDAQ 100.
Based on the early trade, the index is likely to trend higher throughout the session as long as it can hold above the former swing top at 7035.00.
Based on the early trade, look for an upside bias to develop on a sustained move over 6870.50 and for a downside bias to develop on a sustained move under 6827.50.
Microsoft (MSFT), Amazon.com (AMZN), and Netflix (NFLX) have been helping the NASDAQ (NDX-INDEX) outperform all other sectors so far in 2018. Microsoft released its fiscal 2Q18 earnings results on January 31, 2018. Its fiscal quarterly earnings have consistently managed to beat the analysts’ expectations, and this trend includes its fiscal 2Q18 results. The company is rapidly making strides in the cloud space, which can be seen in the increased adoption of its cloud computing platform, Azure.
Based on the early trade, the direction of the index today is likely to be determined by trader reaction to the short-term 50% level at 6827.50.
Trump twitted that “trade wars are good and easy to win, ”Jean-Claude Juncker the European Commission President responded immediately by targeting imports of leading U.S. Brands.
The US stock markets initially tried to rally during the week but found enough resistance to turn around us or falling again. At this point, it looks as if were going to test the lows of February again, meaning that this could be a negative turn of events over the next couple of weeks.
US stock markets fell on Friday as concerns about the Terrace coming from Washington DC on both steel and aluminum. Because of this, there is a lot of concern about a potential trade war, and that has traders walking away.
Earlier in the series, we discussed the tech sector’s (QQQ) outperformance and contribution to the S&P 500’s (VOO) advances in 2017 and 2018 to date. The tech-heavy NASDAQ Composite Index (NDX-INDEX) outperformed other indexes in 2018 to date. It was the tech stocks’ dominance that helped NASDAQ outperform other indexes in 2018 to date.
Based on today’s price action, the direction of the index into the close is likely to be determined by trader reaction to a downtrending Gann angle at 6963.25 and the steep uptrending Gann angle at 6932.00.