May 24 Market Update | Technical, Fundamental, News

CME_MINI:ES1!   S&P 500 E-mini Futures

An analysis for the week ahead.

Points of Interest:

2860-2900 Gap; 2975-2900 Balance.


Nasdaq and S&P relatively strong. Russell, Dow, and NYSE are strengthening.

Monday we gapped and met resistance at a low-volume area.

Tuesday’s overnight broke above the high established on 4/29 and later liquidated, closing on the lows.

Wednesday’s overnight rejected Tuesday’s spike and attempt to fill the gap.

Friday’s overnight, again, failed to fill the gap, establishing a v-bottom at the $2905 area of resting liquidity.

Overall, after Monday’s gap, the market didn’t move much. Instead, it balanced between $2975 and $2900.

Similar to last week, the market has been coming into balance, digesting information, building value, shaking out weak hands. Aside from remaining in balance, the market could extend directionally, or extend and return to balance quickly. Taking out Friday’s low of $2903.75, targets on the downside include $2870 and $2860. A successful break above $2976.25 has me targeting $3015.

Scroll to bottom of document for non-profile charts.


Key Events: New-Home Sales; Consumer Confidence; Building Permits; GDP Data; Durable Goods; Initial Claims; Personal Income , Spending; PCE ; Advanced Economic Indicators.

Next to no inflation for at least 2 to 3 years.

The requisite for long-term inflation .

Top buys from money managers include FAANMG, digital payments, e-commerce. NASDAQ:FB NASDAQ:AMZN NASDAQ:AAPL NASDAQ:NFLX NASDAQ:GOOGL

Bank fraud in commercial mortgage-backed securities puts the entire economy at risk.

HY bond spreads reflect expectations of declining default rate.

Debt issuance decreases risk of near-term defaults.

Barometer for housing demand has increased for 5 straight weeks.

Impact on state budgets beyond anything seen during the Great Depression.

Market crash was a liquidity and re-pricing event. Be wary of further structural issues.

Financial institutions to change habits, reshape business models.

Italian credit quality deteriorates as Italy realizes financial hit from the virus.

Chains like Starbucks seek extended rent cuts, hurting landlords. NASDAQ:SBUX

Oil market will go from over-supply to under-supply.

EIA expects lower natural gas production in 2020.

Rolls-Royce to cut 9,000 jobs, warns of a prolonged recovery.

Uber hones in on core rides, delivery as it cuts a quarter of its workforce. NYSE:UBER

Cisco earnings reveal a challenging outlook, but credit metrics strong. NASDAQ:CSCO

Exchanges, market makers eye strong Q2 amid increased trading volumes.

Senior living and nursing home operators eye financial turmoil.

Mexican auto manufacturing restarts, a positive for credit.

Job openings report shows true unemployment understated.

There is no limit to the Fed’s lending capabilities.

Takeaways from Fed Chair Powell’s ‘60 Minutes’ talk.

Census survey points to economic suffering across U.S. households.

Consumer liquidity rises alongside forbearance programs, lower credit card balances.

Forbearance programs to camouflage weakening bank asset quality.

Questions about the economy overtake searches regarding coronavirus pandemic.

U.S. leveraged loan defaults highest since 2014; retail defaults hit record.

Coronavirus to accelerate ASEAN banks’ digital transformation.

Cities will force a return to the pre-pandemic status quo.

Arizona attracts record venture dollars.

The U.S. would react “very strongly” if Beijing went ahead with Hong Kong security law.

Amazon to hire 50K temp workers in India as demand rises.

Deere & Co tops quarterly results, signals recovery as farmers benefit from relief. NYSE:DE

GM delays resumption of second shift at truck plants. NYSE:GM

U.S. plans massive vaccine testing effort to meet year-end deadline.

Sentiment: 29.0% Bullish , 26.0% Neutral, 45.0% Bearish as of 5/24/2020.

Gamma Exposure: (Trending Lower) 1,639,866,652 as of 5/22/2020.

Dark Pool Index: (Trending Higher) 51.2% as of 5/22/2020.

Product Analysis:




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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