Fed & Earnings Dominate This Week's Prep

Trades in Costco and PepsiCo are possible today.

Technical Edge — 

• NYSE Breadth: 21.5% Upside Volume

• NASDAQ Breadth: 28% Upside Volume 

• VIX: ~$24

This is set to be a busy week — perhaps the busiest of the summer. The Fed’s two-day meeting starts on Tuesday, with a likely 75 basis point increase on Wednesday, while earnings gear up big time. FAANG (minus NFLX, plus MSFT) will report earnings and it’s the last week of July. Meaning the month-end buy/sell game will be in play.

Phew…that’s a lot of stuff.

Let’s get to it.

Game Plan: S&P 500, SPY, Nasdaq, QQQ, COST, PEP, US Dollar

S&P 500 — ES 

We came into Friday “a little cautious” and I am glad we did. We start a fresh week today, but a busy one. 

Danny’s right. On the upside, bulls gotta clear the 4010 to 4020 area.

Last week’s high is 4016-and-change. A weekly-up rotation that doesn’t reverse lower opens the door to the 4085 to 4100 level. This is where the ES broke down from in June. 

On the downside, 3920 has my full attention. Not only was that the 50% retrace of the prior range, but it’s now where the 10-day ema comes into play and is a key short-term support area (the last three day’s worth of lows are 3922, 3930 and 3940).

Losing 3920 opens up 3900 or lower. 

A Trade on the S&P 500 Futures