Hello traders everywhere. The NASDAQ has broken through a key technical support level at $7649.58 where the 50-day moving average stands trading -1.3% lower on the day. The fall lower comes on the heels of a lackluster Friday trade where we saw the NASDAQ fall -1.5% to close out the week. We'll have to watch and see if the index continues lower or if it will bounce off support and head higher having tested the 50-day MA twice in the last two months before bouncing off it and heading higher. Will the third time prove to be different?
The reason for the sharp sell-off can be directly attributed to the FAANG stocks as they continue to be put under selling pressure. The leader of the tech sell-off continues to be Facebook Inc (FB) as it sheds another -3.7% on the day continuing its historic three-day drop. Not to be outdone though Netflix Inc. (NFLX) is down -4.7%, Alphabet Inc. (GOOGL) -1.6%, Amazon.com Inc. (AMZN) -1.5% and Apple Inc. (AAPL) -.6%.
Key Events Coming Up This Week:
- The U.S. Treasury is set to release its funding program for the next three months on Aug. 1.
- Earnings season continues with Berkshire Hathaway, Barclays, Tesla, Toyota, BMW, and Rio Tinto among companies reporting results.
- Central banks in the U.S., Japan, the U.K., Brazil and India all meet this week. The BOJ may tweak its yield-curve control policy and cut its CPI forecasts, while the Bank of England is expected to hike even amid Brexit gloom. The Fed is seen standing pat, as is Brazil's central bank. The RBI will probably raise its benchmark.
- U.S. personal spending and income data for June, coming Tuesday, may be steady. Then it's the jobs report on Friday, which is predicted to show a healthy labor market, with 193,000 new jobs, and an unemployment rate slipping back to 3.9 percent.
- China's PMIs probably edged down in July, analysts say, buffeted by a deleveraging agenda and a trade war.
Key Levels To Watch Next Week:
S&P 500 (CME:SP500): 2,768.51
Dow (INDEX:DJI): 24,518.43
NASDAQ (NASDAQ:COMP): 7,933.31
Gold (NYMEX:GC.Q18.E): 1,226.90
Crude Oil (NYMEX:CL.UN18.E): 72.98
U.S. Dollar (NYBOT:DX.M18.E): 93.44
Bitcoin (CME:BRTI): 9,925.55
Every Success,
Jeremy Lutz
INO.com and MarketClub.com
