Index #ES_F #SPY #NQ_F #QQQ #IWM Bias Update and Levels for Thursday, August 6, 2015
As bullish as the market felt yesterday after the pre-market
ramp following the lite ADP report indexes remain in a lower high formation
especially TF/IWM. Earnings were supposed
to be the catalyst sending the S&P500 back to making new ATHs but so far
the price action in most stocks after reporting earnings has been poor even
after an initial earnings rally/pop that fades like in NFLX
GOOGL FB & AMZN while
almost all other stocks are not getting any type of an earnings rally.
At this point and now that most earnings guidance and most earning reports are not justifying higher stock prices the market is no doubt in some sort of hope that
economic data does not improve (pre-market ramp post ADP confirms) so that the
Fed remains dovish about a rate hike in the near future in order to keep the
easy money in stocks flowing for a fourth straight year in a row. Reminds me of when household incomes did not support the mortgages on
stated income loans back in 2004-2008; reality always catches up at some
point!!
For ESU5 I continue
to watch the 2104s-2108s zone to
contain upside for the lower high formation to remain. If so ESU5 must then first get below 2081s-2077s zone then get below 2070 for definite confirmation that the
lower high formation is likely to continue today and possibly post NFP
tomorrow.
For IWM 125 is
still key to remain in the lower high formation and for NQU5 the lower high thresholds for today are at 4618 and 4636.
Ethan Premock
Futures & Options Strategist
Hamzei Analytics, LLC
Hamzei Analytics, LLC
