Bearish Equity Close & Sunday Night Stop Hunt
Gold Breaking Out + GFBP Position Tracker and 6 19 20 Settles
Happy Father’s Day to all the dads out there, we hope you had an enjoyable and relaxing day. As we highlighted late Friday the SP500 put in an ugly close on the heels of OpX and we noted the Sunday open would most likely see some vol. Well the equities were hit out of the gate most likely driven by forced selling and the SP Sep Future was driven slightly below 3030 which promptly saw bids come in pushing back up to close the opening gap:
We would expect the 3094 area to offer some magnetic attraction and resistance for now. As far as the Nasdaq futures, we smell something afoot with this technical box set up. We can’t help but lean a bit bearish, against many others out there looking for the Central Bank stimulus to continue to work its bullish magic. Yes the Nasdaq has had a massive run on the back of global coordinated central banking efforts, but this box is worrying Magnelibra at the moment:
We are leaning toward a bearish set up here and possible weakness in the overall equity complex. However as has been the trend, we aren’t quite sure the NQ will get hit as much as the other indexes, but this certainly has been flashing on our radar lately. From our Nasdaq vs SP futures $value contract, you can see the Nasdaq has massively outpaced the SP for quite some time:
It’s obvious the sector of choice when it comes to equities (its all tech).
We also look overseas to the DAX Future where it has recently made its way back to prior supports, which now his acting more like contract resistance:
We also noted Gold on Friday and we have a breakout here and we will continue to have a bullish tone toward the complex overall:
The Longer end of the US Treasury curve continues to steepen out, the shorter mid curves have stabilized somewhat, but overall the steepening trend is obvious:
When we look at the overall sector performances of the futures markets we cover, its clear that Bonds have been a decent hiding space all year, and it’s not giving up much of the gains even with a massive equity snap back rally:
As far as our Global Futures Benchmark Program positions tracker, only a small change flipping the Five Year Future short to a long. The program continues to track a defensive Hedged Short posture and we can thank the equities and dollar for that:
The futures settles are next and you can see both Gold & Silver with strong moves on Friday:
OK, we hope you have a great week and we hope you continue to spread the word on our work here with your friends and colleagues, remember, knowledge is key and it is the absolute goal of Magnelibra’s Econemotion to put you always ahead of the pack. When your family, friends and neighbors ask, how you know all this stuff, we hope you point them in our direction. We hope you consider contributing to our work and joining as a monthly subscriber and for the professional traders and investors, join our Founding Subscription because the position tracker is a uniquely proprietary driven model designed as a global macro market analytic that we believe can help to advance your trading and investing game.
-Magnelibra Econemotions
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