Tuesday, 3 May 2016

Pre-Market Brief

Good morning. US equity futures are broadly lower, sp -15pts, we're set to open at 2066. USD continues to weaken, -0.2% in the DXY 92.40s. Metals are little stronger, Gold +$6, with Silver +0.1%. Oil is sig' lower, -1.2% in the $44s.



So.... almost all of yesterday's gains are set to be negated at the open... for the bears.. this is a rather good start to the day.

What will be important is breaking under the Friday low of 2052... but that is 29pts (1.4%) lower... and considering the power of the rebounds... it won't be easy.

The bigger daily/weekly cycles continue to lean in favour of the bears.. and 2040 remains a realistic initial target this week.

Things only get interesting on a daily close in the 2020s, and that looks out of range this week.

*if we do break under 2033 though... a 38% fib retrace (of 1810-2111) to the 1990s will become a target.. before next opex.

early movers...

BAC -1.3%.. as Mr Market is struggling whether to price in a rate hike.. or otherwise.
FCX -2.5% in the $13s.. which is a somewhat bizarre level considering the global economic weakness
SDRL -6.4%... as oil/energy sector back under pressure

VIX +8% in the 15.80s..  breaking the Friday high of 17.09 will be tough.... and will be more viable tomorrow.

Update from Mr C.

Mostly commodity chatter.. but it merits some consideration.

Overnight action

China: +1.8% @ 2992... are the PBOC meddling again?
Germany: -1.8% @ 9938... indeed, the loss of the 10K threshold will have some of the bull maniacs a little twitchy now.

Have a good Tuesday

9.27am.. In far more important news.. Capt' will ring the opening bell.

Bullish team Capt'