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With a handful of earnings on the docket and long-term treasury yields moving higher today, all three major U.S. indices closed in the green. The $HRL, $DOCU, and $OKTA earnings this week and the consumer price index data on Friday could have an impact on the market’s next move. CPI data due on Friday will be a key point of interest for investors this week as the 10-year note topped 3% today and the 30-year note at 3.2%. The dollar, oil futures, and tech sector traded higher today while gold and bitcoin moved lower. Amazon’s 20-1 stock split has taken into effect and shares moved higher, while Tesla and Twitter moved inversely following Elon Musk’s latest comments. Musk is holding off on his deal until Twitter is able to determine the number of spam/bot accounts, which sent shares of Twitter lower. Foreign Trade Balance and Consumer Credit reports are due on Tuesday; Friday is set to have several key reports released including inflation reports and the Federal Budget.
We are watching the overhead resistance levels in the SPY, which are presently at $420 and then $430. The $SPY support is at $404 and then $396. We expect the market to continue the recent rally for the next 2-4 weeks. In the short term, the market is oversold and due for a rebound. Globally, both European and Asian markets finished 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 $119.40 per barrel, up 0.45%, 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 $88.39 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 down 0.34% at $1843.90 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 $171.82 at the time of publication. Vector signals show +0.21% 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 3.049% at the time of publication.
The yield on the 30-year Treasury note is up, at 3.201% 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 $25.07 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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