Stocks Finished Little Changed With a Big Week of Data Starting

Subscribe to The Free Market Chronicle and join the 2,679 subscribers getting it for FREE!

7/29/24

#Stocks:

#Macro: $SPX, $USDJPY, $VIX, #rates

Check out My Reading The Market’s Macro Subscription Service For More Content Daily:

It was a boring day, and given the amount of overload we will be getting starting tomorrow morning, you can’t blame the market for holding in place and basically trading sideways since Thursday. The S&P 500 topped out last Thursday at 5,490 and has tested that level four times. With the zero gamma level around the 5,520 region and liquidity thinning out, these conditions make it hard to predict what could happen next. The S&P 500 could just as easily rip to the 5,550 level as it could drop to the 5,400 level.

Neither of those spots is out of reach. It doesn’t take much to get this market moving, which makes the fact that it hasn’t been able to get above 5,490 interesting. The conditions for the index breaking out and up seem more favorable, given the negative gamma regime and lack of liquidity than for it to break down because it wouldn’t take much for someone to try to sweep the top of the book to move the market. That is pretty much what it seems like has been happening in the future on Sunday night, but at least today, that didn’t pan out very well.

If I use some of my artistic drawing skills, I could almost make a case that the pattern formed in the S&P 500 over the past few days is an inverse cup and handle pattern.

Meanwhile, the pattern in the NASDAQ seems a little bit less questionable than that of the S&P 500. The NASDAQ appears to be forming a pennant pattern.

Anyway, tomorrow starts the data dump and a significant earnings parade, so there’s no point in going on today about a non-event day.

-Mike

Charts used with the permission of Bloomberg Finance L.P. This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.