Markets closed the week with a dip as record highs gave way to profit-taking. Chip stocks, including Nvidia, faced reversals, impacting the S&P 500 and Nasdaq. Despite a strong job growth report, rising unemployment and slowed wage growth tempered the market's enthusiasm. NVDA closed 10.14% off it's ATH and Costco's 7.6% drop signaled cautious consumer spending. NQ finished the week -1.44%, ES -0.11% and MYM -0.76%. XLY & XLK finished the week red, while defensive XLP & XLU closed green. This week earnings season will con't to wind down and the focus will shift to CPI & PPI data for the lates clues about potential rate cuts.
SUMMARY
SUMMARY
- ES had a weekly of 0.11% after trading in a wide range of 131 pts.
- ES made another ATH high but pulled back 1.10% on Friday.
- R1 = LTF 1.618 Fib X (5212)
- R2 = ATH (5257)
- S1 = 9 ema (5178)
- S2 = 21 ema (5133)
- Bias will remain long unless new information is presented or until the upward trendline is broken.
- Limited resistance levels above make large whole number very important.
- Potential risk-off shift for stocks last week. XLK & XLY down. XLU, XLP & XLRE up.
- NVDA dropped 10% from ATH. COST dropped 7% after earnings.
- Econ data this week includes CPI on Tuesday & PPI on Thursday.
- Watch for small cap growth to finally take off.
- RSI 62.25 | VIX at 14.75 | 10 year 4.25%
Comment:
ES continues to grind higher. Dip to start the week was bought up quickly. R1 & R2 have been broken. Next upside target is the 1.13 Fib extension.
