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Things to consider before US market open today

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Updated: 28 August 2020
  1. SPX futures (/ES)tested higher prices this morning and so far it holds the top of the channel noted in the chart. Also as discussed yesterday we are at the higher Bollinger bands that slowly show some resistance. Nasdaq was lagging yesterday and this also did not give much momentum to the overall market leaders. We saw some rotation into financials but no continuation yet so stay careful. spx chart 28082020
  1. Europe tries to go green with FTSE is +0.08%; DAX -0.19% and CAC +0.01 at the moment. As tech leaders were lagging yesterday after a great move in Wednesday we may expect some back and forth rotation into other industries. Not much to do except exceptional gap trading.
  1. The calendar does not provide any momentum boosters as no important data is released this morning. CFTC positions on Oil, Gold, Nasdaq and SPX are released from CFTC.
  2. Gold had a back-test of the supports but strong this morning showing +1.6% rise. We may get a descending trendline break soon, hopefully it goes on Monday-Tuesday as the first break can be a trap.  gold chart 28082020
  3. The UUP is failing the right shoulder and the SPX futures slightly higher this morning. Can this signify a fake-up or will this morning we get a bounce in US dollar and a sell-off In the markets. Powell definitely gave us a clue on 2% inflation target over a period of time but that doesn’t mean the shorter term inflation cannot exceed these expectations.

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