Nasdaq (-1.01%) clearly lost its support with a second close below it. The price seems to be attracted by the psychological level of 10.000 and then 9700 or 9400 if the market continues to be weak and distribution days are often. Observing and waiting for a new base to be formed. $NASDAQ(.IXIC)$
SP-500 (-0.65%) is basically the same story here as well, but with above-average volumes. The pattern is bearish and I think we will see lower prices before a real reversal. Watching the marked levels. $S&P 500(.SPX)$
In the news
Meta CEO Mark Zuckerberg debuts Meta Quest Pro VR headset that will cost $1,500. $Meta Platforms, Inc.(META)$
Honda’s new $4.4 billion EV battery plant will be built in Ohio. $Honda(HMC)$
GM is launching a new business to connect homes and businesses with EV chargers and energy storage. $General Motors(GM)$
Bank of England intervenes in bond markets again, warns of ‘material risk’ to UK financial stability.
IMF cuts global growth forecast for next year, warns ‘the worst is yet to come’.
NATO warns Moscow against attacking allies’ critical infrastructure.
Sectors
- Best yesterday sector: Real Estate, then Consumer Defensive. Worst sector: Technology.
- Best weekly sector: Energy, then Consumer Defensive. Worst sector: Technology.
- Best monthly sector: Energy, then Healthcare. Worst sector: Real Estate.
Sentiment
- NAAIM (weekly, neutral between 70 and 90): 38.11
- VIX (neutral under 20): 33.63
- Equity Put / Call Ratio (neutral between 0.7 and 1): 0.97
- CNN Fear & Greed: 18 (Extreme Fear)
Breadth
- Stocks above SMA40 (neutral between 30 and 80): 21.18%
- Stocks above SMA200 (neutral above 30): 21.51%
- Number of stocks that increased yesterday by more than 4%: 210
- Number of stocks that decreased yesterday by more than 4%: 288
- McClellan Oscillator (neutral between -100 and 100): -63.003
Earnings Reports
PepsiCo PEP 0.36%↑will report third-quarter results ahead of Wednesday’s open. Analysts anticipate earnings per share (EPS) of $1.83 and revenue of $20.6 billion for PEP’s third quarter. That is slightly below analysts’ consensus estimates for earnings of $1.84 per share — up 2.8% year-over-year (YoY) — and revenue of $20.8 billion (+3.0% YoY). $Pepsi(PEP)$
Other noteworthy earnings reports for today: $Duck Creek Technologies, Inc.(DCT)$
What to trade today
The environment is still risky. Main indexes are at the June lows or lower, VIX is higher, CPI / inflation data are due tomorrow and political tensions are just a few things for assessing the market as unstable.
Even shorting I found risky as the support can “send” the price equally in both directions: up if reversal or below if a breakdown.
If you like a pattern with a low-risk entry and want to trade, you may consider a lower position size and a tighter stop.
Since I do not have an edge in this type of market, I stay away from trading in and out.
Do your due diligence if or when placing a trade. All ideas stated here are my own and do not represent trading or investment advice.
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