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Things to consider before US market open today

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Updated: 21 August 2020
  1. SPX futures (/ES)retested the resistance zone yesterday despite the drop in the morning. At the moment we have a bearish rejection of the 3390s and we look forward to see if we can hold the area. Nasdaq is better and most leading stocks will be helpful if we see a continuation. spx chart 21082020
  2. Europe is mixed and looking slow. The futures are in the choppy zone and not sure we can say that starting positions here in any market will give you short term gains unless you trade gaps and momentum news related stocks. Asia is strong but it can be easily faded if the US opens and continues lower. Chop zone nothing more.

  1. This morning we have $FL $DE $PDD $BZUN $BKE as the most important ones to consider for earnings movers. As you can see, we have a huge difference between now and a few weeks back when we have hundreds of stocks reporting in the morning. Watch the mentioned companies for gaps up/down.
  2. Gold is still not pretty this morning. We may have some more selling as the US dollar is getting stronger on the international markets. This will cause the commodities be more expensive in terms of FX exchange rate so the demand could be less attractive. As an example, look at EURUSD and the Gold Futures GC1! – they pretty much rallied at the same time. Now look at UUP – which is a US Dollar Index Fund – which had a drop during the same period.
  3. Options expiration and Existing Home Sales are the main fundamental drive of today prices. So far the pre-market indicates the bearish sentiment on all sectors – SP500, Russel, Dow and Nasdaq.

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