Technical Analysis:
Currently price is retracing and clearing liquidity from old lows, after price fill the imbalances and clear the liquidity we can look for MSS on 1min or 5min tf to go bullish on US500. Overall trend is bullish for now.
Fundamentals:
September S&P 500 E-Mini futures (ESU24) are trending up +0.91% this morning, extending the rebound from Monday’s dramatic selloff, supported by remarks from a senior Bank of Japan official ruling out further rate hikes during periods of market instability, while investors awaited a new batch of earnings reports.
In yesterday’s trading session, Wall Street’s major indexes ended in the green. Kenvue KVUE surged over +14% and was the top percentage gainer on the S&P 500 after the company reported better-than-expected Q2 results. Also, Nvidia NVDA gained more than +3% after New Street Research upgraded the stock to Buy from Neutral with a price target of $120. In addition, Caterpillar CAT rose about +3% and was the top percentage gainer on the Dow after the construction equipment company posted upbeat Q2 results and said it expects an annual adjusted operating profit margin above the top end of its targets. On the bearish side, Henry Schein HSIC slumped more than -8% and was the top percentage loser on the S&P 500 after reporting weaker-than-expected Q2 revenue and cutting its full-year guidance.
“We would characterize the recent market pullback as a textbook correction, after months of low volatility so far in 2024,” said Carol Schleif at BMO Family Office. “The lack of volatility before the past few weeks is unusual, and our current correction is actually quite normal, especially during August, which historically is a volatile time for markets given lighter trading volumes and the summer doldrums.”
Economic data on Tuesday showed that the U.S. trade deficit widened to -$73.10B in June, compared with the -$72.50B consensus and -$75.00B in May (revised from -$75.10B).
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