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After closing lower on Friday to extend weekly losing streaks, the broad market finished higher on Monday as investors sought safety amid a volatile week. After a disappointing week, the Dow Jones finished up 1.98 percent, recovering nicely after having its eighth consecutive losing week last Friday. This week Nvidia, Alibaba, and several retailers are set to release quarterly earnings while Wednesday the latest Federal Open Market Committee meeting minutes are set to release. The global focus this week returns to China-U.S. relations as President Biden announced the possibility of reducing tariffs, and also the latest World Economic Forum is set to resume in Switzerland after a two-year hiatus.
$VIX is trading near the 30 level. $COST and $ADSK earnings this week can influence the next move in the market. We are watching the overhead resistance levels in the SPY, which are presently at $396 and then $410. The $SPY support is at $390 and then $380. We expect the market to continue the bottoming process for the next 1-2 weeks. In the short term, the market is oversold. Globally, Asian markets traded to mixed results while European markets closed in the green. We encourage all market commentary readers to maintain clearly defined stop levels for all positions. For reference, the SPY Seasonal Chart is shown below:
Note: The Vector column calculates the change of the Forecasted Average Price for the next trading session relative to the average of actual prices for the last trading session. The column shows the expected average price movement “Up or Down”, in percent. Trend traders should trade along the predicted direction of the Vector. The higher the value of the Vector the higher its momentum.
*Please note: At the time of publication Vlad Karpel does have a position in the featured symbol, FCX. Our featured symbol is part of your free subscription service. It is not included in any paid Tradespoon subscription service. Vlad Karpel only trades his money in paid subscription services. If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader, or MonthlyTrader recommendations. If you are interested in receiving Vlad’s picks, please click here.
West Texas Intermediate for Crude Oil delivery (CL.1) is priced at $110.05 per barrel, down 0.28%, at the time of publication.
Looking at USO, a crude oil tracker, our 10-day prediction model shows mixed signals. The fund is trading at $81.11 at the time of publication. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The price for the Gold Continuous Contract (GC00) is up 0.26% at $1852.60 at the time of publication.
Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows mixed signals. The gold proxy is trading at $169.33 at the time of publication. Vector signals show -0.11% for today. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The yield on the 10-year Treasury note is up, at 2.854% at the time of publication.
The yield on the 30-year Treasury note is up, at 3.061% at the time of publication.
Using the iShares 20+ Year Treasury Bond ETF (TLT) as a proxy for bond prices in our Stock Forecast Tool, we see mixed signals in our 10-day prediction window. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The CBOE Volatility Index (^VIX) is $28.48 at the time of publication, and our 10-day prediction window shows mixed signals. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
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