Nasdaq (-1.02%) possibly found support at SMA50. Staying above it will be a good sign. Another scenario might be founding support at the recent low (11530 area). If violated, we can see lower prices. Regarding the upside, the first target will be reclaiming the EMA21 and then the road to the SMA200.
SP-500 (-0.67%) made another leg down but with a lower volume. Hard to tell now if it is a kind of bear flag or a support for a possible reversal. Watching yesterday’s low, SMA50 and recent low at 3900 area. For the upside, the targets are EMA21, 4200 area and of course SMA200 / 4325 area.
In the news
Walmart looks to buy out South African retailer Massmart.
Starbucks' Pumpkin Spice Latte is coming back at a higher price.
The new Jackson Hole consensus: A more volatile world is here to stay.
Apple Sends Invites for Sept. 7 Event, New iPhones Expected.
AMD launching what it claims is the ‘fastest processor in the world for gaming’ in September.
Sectors
Best yesterday sector: Energy, then Utilities. Worst sector: Technology.
Best weekly sector: Energy, then Basic Materials. Worst sector: Technology.
Best monthly sector: Energy, then Utilities. Worst sector: Healthcare.
Sentiment
NAAIM (weekly, neutral between 70 and 90): 54.86
VIX (neutral under 20): 26.21
Equity Put / Call Ratio (neutral between 0.7 and 1): 1.22
CNN Fear & Greed: 54 (Neutral)
Breadth
Stocks above SMA40 (neutral between 30 and 80): 49.57%
Stocks above SMA200 (neutral above 30): 29.98%
Number of stocks that increased yesterday by more than 4%: 123
Number of stocks that decreased yesterday by more than 4%: 160
McClellan Oscillator (neutral between -100 and 100): -109.33
Earnings Reports
Consumers' demand for electronics will be in focus when retailer Best Buy BBY 0.00%↑ reports second-quarter earnings ahead of the Aug. 30 open. For BBY's second quarter, consensus estimates are for earnings per share (EPS) of $1.29, down 56.7% year-over-year (YoY), and revenue of $10.3 billion (-13.4% YoY). Analysts aren't expecting a blowout quarter for HP HPQ 0.00%↑ but they do believe the PC and printer maker churned out slow and steady growth in the three-month period ended July 31. HP is slated to unveil its fiscal third-quarter results after the Aug. 30 close. Analysts, on average, expect the company to report EPS of $1.04, up 4% on a year-over-year basis. Revenue is projected to rise 3.3% to $15.8 billion.
Noteworthy earnings reports for today:
What to trade today
Market is in indecision mode, the price action was not convincing us of a direction. It is far better to wait than betting blindly on a direction.
No intention to trade today. Most patterns are broken.
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.
In order to learn more about trading, you may want to read:
Valuable information
uranium stock UROY in the energy sector might be setting up.