Scott Burrill - Market Notes

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On the Prowl for a Catalyst

Jul 21, 2019

Good Morning:

While I've been traveling, Equities have marched forward to find rejection near all-time highs, and Gold, Oil and Bonds have provided plenty of trade action for nimble players.

With only 15% of the SP500 reporting Earnings, we expect to see earnings announcements accelerate over the next few weeks with 241 pre-screened companies reporting this week. Note: corporate repurchases will remain on the sidelines for the foreseeable future.

It's a quiet week for Economic Releases and Fedspeak ahead of their policy meeting on the 31st, except for Home Sales and the ECB Policy Meeting followed by ECB Chair Draghi's Press Conference on Thursday.

The Weekly Option Implied Move in the SP500 is + / - 40.8 points or an Upper Bound of 3017.48 and a Lower Bound of 2935.74.

The Weekly Magnet is 2990 and the short-term bias is Down.

The intermediate-term is Up.

Focus this quiet, catalyst-filled week is on Earnings Announcements and Guidance, as well as price action off of key Levels. Furthermore, with the probability of a rate cut at 100%, whether the magnitude of that cut on the 31st by the Fed will be 25 basis points (81.5%%) or 50 basis points (18.5%), and the Market's set-up and reaction going into next week.

Updated Levels.

Have a great week.

All the best,

Scott

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