Most sectors gapping down, everyone except potentially consumer discretionary which looks like it will open flat. Each sector rebounded yesterday, but all on relatively weak volume. /ES has almost given back all of its gains from yesterday already in premarket & is approaching significant 3700 level for it’s now 4th daily test of this level. A break through today will likely have less demand supporting it as whatever demand was there & just above it was likely absorbed over the last 3-6 days.
Communication Services
- Closed red on weak volume. Gapped down below significant 53 mark
- META | After considerable selloff yesterday, gapped down, but showing strength in premarket.
- BIDU | Gapped down after another day of bouncing off what looks to be upward sloping trendline. A break below this could be significant but there’s a ways to go before it’s touched again even after gap down. Below 142.6 could see move down to 141, however this is area of relative churn & demand. Must look for & have weakness in overall market for straight forward move down. However this 142.6 level could be good area to play from. Beware of gap fill. If there is bounce in market, gap fill here could be massive. /ES looks like pretty convincing bear flag, but still, approaching significant 37. level, exercise caution.
Consumer Discretionary
- Considerable gap down, after bounce off 133 level on diminishing volume.
- AMZN | Opening near 106 support, seems to bee holding premarket, however this could be reasonable level to trade off to the downside, though there is not a clean move straight down. would be better to wait until price breaks below 102.8. However, the last bounce from said level was rather violent, so a drop could be as steep. This is not a clear cut trade & depends on 3700 breaking on /ES. look for better prospects.
- HD | Looks like it will open near considerable 265 daily support. If /ES breaks 3700 this will likely break as well & has room to fall the the next daily level of 260. Beware of gap zone from yesterday. Could gap fill, however overall trend is weak.
- PDD | Halfway between filling gap, with downward momentum from afterhours & premarket, this looks promising, at least down to 60 level, which is only 1 point, but with enough size, could still yield. Beware of sizing too large, & of gap. Though lower priced, this moved 10% in one day & consistently does so.
Consumer Staples
- Gap down but strength seems to be apparent at 70 level.
- WMT | Looking to open near considerable 121 level that it broke through 7 closed above with ease yesterday, though on lower volume. If support is maintained in /ES, this will likely hold here. exercise caution, any break below is likely a trap unless there is considerable downward pressure across the market.
Energy
- Considerable gap down, with what looks like could be momentum to continue moving. Oil is down, & there looks to be convincing evidence of what could be bear flag on energy index daily, though this could be consolidation period, caution should be exercised.
- XOM | Opening near hourly 149 level with what looks like considerable downward momentum premarket. Oil futures are trending down with some ways to go before meaningful 100 level (currently at 102). Could be opportune play to the downside
- CVX | Similar to XOM, opening near 149 level, good spot to play from, room to fall to 146 level, though there has been some trading activity in between.
Health Care
- A
- AZN | Been on tear, approaching significant daily level, long-term trend is down but over the past week there has been considerable demand from 58 level pushing stock to 63 where it hovers now. If market doesn’t hold, this seems a prime area to short this stock from.
Information Technology
- Looks to be considerable upward strength premarket across most names, Nvda gapped down considerably, as well as msft tsm aapl
- AAPL | Approaching daily 135 level in premarket after gap down, looks to be prime area to short from, or to have as stop, there is strength in /es now but doesn’t seem likel yto hold,
BA, XOM