Monday, August 5, 2024

SPX, NDX Gap Down, Rally, Lower Close...All Sectors Move Lower...After-hours: PLTR Up EPS Reaction, Future Rebound...


© 2024


The SPX -160.23, 5,186, opened lower, rallied into a trading range and closed down on Monday.  Reports indicate that after last week’s ISM Mfg. data and Jobs Report some traders have fears about a potential recession.  Overnight futures trading, Sunday night to Monday morning, to the downside suggests fear (emotion) selling may have been a primary factor. 

Can you believe that two reports would convince rational adults to ignore the July 25, (just seven trading days ago), Q2 GDP report of 2.8% vs. a 2.0% consensus and a Q1 1.4% GDP.  Recession? Recession?  We’re talking about one ISM report and one Jobs report.  What a myopic view of a 2.8% GDP economy.  Silly, silly people that clearly forgot that a recession is “a sustained period of economic decline that lasts more than a few months and is visible across the economy.”  No evidence, just silly, silly emotion.

The ISM Services index was 51.4 vs. 51.0 estimate, better than expected.   

The NDX -2.96%, gapped down, traded in a range above its opening price that closed above its open and below Friday’s close.

K +10.22, +16.23%, on takeover talk.

After-hoursPLTR +2.91, +12.08%, CSX +1.10, +3.33%, on positive EPS reactions, /ES +66.00.


Mega caps META, MSFT, AMZN, TSLA, GOOGL, AAPL, NVDA fell on Monday.


SPY down 15.52 at 517.38, 145.9 million shares, 177% above the average volume of 52.7 million shares, the highest volume of 2024.
VIX up 15.18 at 38.57
QQQ down 13.38 at 435.37

MMM, PG, CAT, WMT led the DJIA, 0 advancers, -11
K, TSN, ON, CHD led the SPX, 22 advancers
DASH, CRWD, AMD, CEG led the NDX, 12 advancers

Up
Down:  DIA, SPY, QQQ, IWM,

All eleven sectors were lower on Monday, with the least declining sectors XLI, XLP and XLE.

The SPY MFC green line is pointed down at 21.8 and is short-term bearish.

Uptrend sectors:   XLRE, XLU, XLV, XLP, XLC, XLF, XLB, XLI, XLK,
Neutral sectors:  XLE, XLY,
Down trend sectors: 

The 6-month intermediate trend is up.  The ten-day trend is down.

3-month Intermediate Term Market Trend: Sideways
3-day Short Term Market TrendDown


12 of 100 NDX stocks closed higher on Monday.

30 NDX stocks are above their 30 DMA:  REGN, CHTR, EA, CTAS, AMGN, GILD, ODFL, AEP, CTSH, GEHC, ILMN, FAST, LIN, ADP, PAYX, EXC, WBD, XEL, KHC, PEP, ORLY, MDLZ, MNST, CMCSA, KDP, PYPL, AZN, DASH, TMUS, MELI,

NDX Stocks to Watch on Tuesday:
Moving Above 30 DMA = 0



Moving Below 30 DMA = 6
BKR, CSX, CCEP, CSGP, ISRG, VRTX,



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