Bears winning this fight?📉 - Tuesday Brief

What’s up traders.

Tuesday report coming in hot off the press.

Let’s jump in…

Impact Snapshot

  • U.S. existing-home sales dropped in July to their lowest level in six months

  • Earnings:

Market Evaluation

It’s true technology stocks are sensitive to a high interest rate environment because their value rests on future earnings. Despite that, tech rallied, making their gains even more striking.

The stock market struggled to find direction in early hours, following a rally driven by optimism over results, which are set to test Wall Street’s fervor around the artificial-intelligence hype.

The recent rally in megacaps gave tech bulls some reasons to be encouraged about how the group will act into the seasonally challenging September/October timeframe

All eyes are on NVDA’s earnings report tomorrow which could be just as important as Jerome Powell’s speech in setting the tone for the markets this week.

S&P Global Ratings downgraded the ratings of five regional banks late Monday by a single notch, after a review that focused on risks relating to funding, liquidity and asset quality with an emphasis on office commercial real estate.

Yields on U.S. Treasuries continued marching higher, with the benchmark 10-year yield closing at 4.342%, a level not seen since November 2007. Always pay attention to DXY, US10Y, VIX when you’re trading the future markets as S/R on them will take an effect on what you’re trading.

Markets Breakdown

Yesterday’s session was a “relief” for the bulls as sellers showed exhaustion took place as buyers showed up to push the prices higher from our key zones.

Read our Overnight post HEREOur pivot at 4390 offered as the pullback zone with a quick bounce of 0.43% on the upside where sellers took control and successfully broke down below it which was seeing the first support at 4372 as the target to watch

After the pullback occurred we bounced off at the exact first target support of 4372.

As we’ve posted on Twitter(X) here, bulls would have to re-claim our pivot of 4390 in order to find continuation on the upside and halt the selling pressure.

After successfully reclaiming the 4390 level, we targeted the first upside target of 4411 which was the resistance to look at for the day and we managed to hit that level successfully afterwards.

The whole session played between the exact targets we’ve posted on Twitter. Middle of the range was 4390 pivot.

The first buy zone was the downside target of 4372 and the take profit zone the high of the range at 4411.

As we always mention, once we flip a target on the other side it automatically turn into S/R.

When the pivot acts as support then its broken on the downside and find acceptance towards the next range below, on the way up, it will act as resistance.

The same is true for all the levels we observe.

The Day Ahead

In today’s session for ES, US markets opened at the bullish target we’ve mentioned at 4428 but the presence of seller quickly filled the overnight gap and pushed the prices lower.

The plan remains the same to the one we’ve posted in the overnight session HereThe ability to hold above the pivot of 4397 will offer the opportunity for bulls to continue towards the targets we’ve mentioned.

If the pivot fails to hold the selling pressure and lose the key level of 4350, the downside continuation will occur.

ES

The targets we look for until NY close & Targets to pay attention Tomorrow:

  • Main pivot: 4397

  • Upside Levels: 4428/4443/4458

  • Downside Levels: 4370/4350/4327

That’s it for today’s report.

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We’ll see you on Thursday.

Cheers.

Disclaimer: Futures and options trading carries a significant level of risk and may lead to substantial financial losses. The content provided in this newsletter is solely for informational purposes and should not be construed as a trade recommendation or financial advice. It is essential for readers to independently assess and make their own investment decisions, taking into consideration their personal financial situation and risk tolerance.