Monday - August 03, 2020
Futures Watch
/ES closed strong last Friday into the close after selling off and reversing. Opening 3272 Sunday night. Pulling back to VA High 3250, we're starting the morning and the month higher well above the VA Range and hitting a high of 3286. Typically the Main Thesis is that price wants to revert to the Range above/below; however, given the amount of volume sitting slightly above the VA High, we can see a slight pullback and rally to build more value into a new area OR an all-out rally to exceed much higher from the beginning.
10D 30M Chart
/NQ had an interesting dip and complete reversal into the VA Range and returning back to roughly 10900. We opened 10933.25 and are seeing as lightly rally higher this morning; however, we have a known strong resistance at 11000 where we've seeing major pullbacks in the past month. I'd be watching the reaction at the resistance to see if other major products can continue higher or if a similar reaction occurs.
10D 30M Chart
/RTY seemed weaker on the reversal Friday and into the close, not able to recover the opening highs around 1490. Opening Sunday night 1479.2, we're coming into both Friday highs and VA High 1490, so some expectation of resistance is expected.
10D 30M Chart
Premarket Review at 9:00 ET
Interesting Futures:
Natural Gas up over 6.5%, strong to break above 2.0. Levels 1.62 and 2.1 strong range, recently found support at 1.62 Yearly Support level.
Volatility up slightly 1%, waiting for more information.
Premarket Sectors at 9:15 ET
Strong Sectors: Technology up 1.2%, carried by major tech names continuation from Friday.
Weak Sectors: None, but watching Financials with Bonds ($TLT) selling off slightly and a strong $SPY.
Things to Watch:
Banks if bonds get a selloff, hoping we have some correlation with a strong overall market.
$UNG - Natural Gas play
$ADT - Google to buy a 6.6% stake in ADT in home security push
Big Tech - Carrying the markets higher, but also watching QQQ against 269.67 double top resistance.