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Things to consider before US market open today

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Updated: 14 August 2020
  1. SPX futures (/ES)shows a resistance zone in the 3380 zone. The next is all time highs is at 3397. Nasdaq can be the trigger as the rotation into tech helped the market once the small caps and dow stocks went lower this week. Once the Rotation in tech is in play we can hope for an acceleration. spx chart 14082020
  1. Europe is slow and looks ugly at the moment, we are seeing DAX -1.12%; FTSE -1.88% and CAC40 -1.84. As the US markets are at resistance we can see lose and wide moves in momentum stocks and let the market show you what is next. So far no major clues we are going lower, its just a tough market location for momentum moves.

  1. There is an idea with related to ELF – A beauty products company that is trading relatively strong versus its group. As the stock is getting more attention, consider it for technical setups in the next months as it can run nicely once picked by bigger investors.

  1. Gold is trading near $1950. We need to see what the market does with SPX near all-time highs and also watch the sideways action that might be needed to set another clean entry with a new full size tier. Watch for inside days forming next week.
  2. No major news are in the fundamental space. We have CFTC data on the index gold and oil. Currently we also might see options expiration as its Friday. Not a lot of volatility triggers and gappers on earnings. Stay humble, as we discussed, patience is your best investment now. Its fine if you have 1-2 trades per week with 30-40% probability and a nice 4:1 Reward to Risk Ratio.

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