Markets opened flat and moved sideways yesterday but finally gave way to selling pressure in the final hour.
The Nasdaq and S&P 500 finished the day down 0.9% each.
Energy was the worst-performing sector. It was dragged down by the price of crude oil which fell 8% intraday to $95.48 a barrel.
A notable bright spot came from the meme stocks…
- Gamestop (GME^) gained 5.4%
- AMC Entertainment (AMC^) rose 4.3%
This morning all eyes will be on the CPI report which is due out at 8:30 A.M.
- The White House is downplaying expectations, calling the report “out of date.”
- One J. P. Morgan (JPM) report said, “headline inflation peaked in June.” (see chart)
This morning I’m not focused on the headlines … I’ll be watching the market’s reaction.
Bitcoin has traded below the critical level of $20,000 level for the past 24 hours.
Failed crypto hedge fund Three Arrows Capital is making headlines.
- A Judge ordered their assets frozen
- And the founders’ whereabouts are “currently unknown.”
The failure of 3AC is another stress test for the industry … Bitcoin’s resilience at $20K is a bullish indicator.
Look at the chart … The market is in a downtrend.
SPY Daily Candles – Chart via thinkorswim
Other indicators are neutral this morning.
The market is preparing for the CPI data … Which will drive the price action today.
It’s earnings season!
- Delta Air Lines (DAL) reports this morning before the open
Tomorrow the action starts to heat up with the first big banks reporting premarket…
- JPMorgan Chase (JPM)
- Morgan Stanley (MS)
Friday is July’s option expiration. That tends to bring extra volatility to the market…
*TRVI has support at $3.50, resistance at $4
*FNKO has support at $22
^CBIO has resistance at $1.80, support at $1.60
TH is on watch
PLRX is on watch
WVE has support at $4
CELH has support at $75
ALDX has support at $5
VERU has resistance at $16
^CTIC has support at $6.50
SGEN has resistance at $180
TCRT has resistance at $1.50