The major U.S. equity averages finished Monday's trading with a mixed performance. The S&P 500 and Dow continued their recent winning streak, recording their fourth consecutive days of gains.
Energy provided the most prominent source of strength, with the sector rising almost 5%. Stocks in the sector posted gains as crude prices (CL1:COM) (CO1:COM) surged more than 6%, rising above $80 per barrel. Over the weekend, OPEC agreed to trim production by another 1.16M barrels per day.
Chart: SPX daily and 15 mins
Recent pull up was too strong and too "optimistic" about the Marco economy, I hope I am wrong, I think the rise in energy prices will drag down economic growth to a certain extent and weaken the rebound momentum of the stock market. However, the market act like that everyone is betting that the Federal Reserve does not dare to raise interest rates, thinking that raising interest rates may further lead to a recession. The PMI value is slightly lower than the previous value and less than expected, which is more like bad news is interpreted as good news in a bad market. And from the daily chart, the SPX is already extended from 8&21 EMA, and also close to prior weekly basis resistance and from the 15 mins chart, if it drops below 4098 it will make a double top pattern which give me more confirmation to get into short side of the trades.
For today, the market opened a bit lower than yesterday's close, and I don't think yesterday's high can be trust as loss for market open, therefore, I will use 4159 at the market open, and see how it goes.
Energy provided the most prominent source of strength, with the sector rising almost 5%. Stocks in the sector posted gains as crude prices (CL1:COM) (CO1:COM) surged more than 6%, rising above $80 per barrel. Over the weekend, OPEC agreed to trim production by another 1.16M barrels per day.
Recent pull up was too strong and too "optimistic" about the Marco economy, I hope I am wrong, I think the rise in energy prices will drag down economic growth to a certain extent and weaken the rebound momentum of the stock market. However, the market act like that everyone is betting that the Federal Reserve does not dare to raise interest rates, thinking that raising interest rates may further lead to a recession. The PMI value is slightly lower than the previous value and less than expected, which is more like bad news is interpreted as good news in a bad market. And from the daily chart, the SPX is already extended from 8&21 EMA, and also close to prior weekly basis resistance and from the 15 mins chart, if it drops below 4098 it will make a double top pattern which give me more confirmation to get into short side of the trades.
For today, the market opened a bit lower than yesterday's close, and I don't think yesterday's high can be trust as loss for market open, therefore, I will use 4159 at the market open, and see how it goes.
