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Futures Market Insight w/John Caruso – 08/6/2019

Posted 08/06/2019 2:22PM CT | John Caruso

Total Equity volumes exploded yesterday +25% vs the 1 month avg. People who tell you “volume” doesn’t matter are full of it. The market was fat and lazy and no “new money” was being put to work all the way to new ATH’s in July and then WHAM! You get the big flush and money runs for the exits and volumes explode. 

China- No bounce last night – Shanghai lead the losers overnight

Earnings have been gradually coming in worse, with 400/500 S&P 500 companies reporting an intra quarter low of 1.2% growth and now tech, energy and consumer discretionary stocks posting y/y negative growth. Earnings are slowing and they’re beginning to slow at a faster pace (rate of change). 

Clearly, I can’t stress this enough, in big bold letters. 2820 is a VERY key level in the SP500 – a close below that level flips the longer-term (2-3yrs) chart set-up to BEARISH trend.  We are currently in a Bearish formation from a3-6month set-up. This is where your trend-following funds get bearish on the market.

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John Caruso

Senior Market Strategist
Follow John on Twitter @JCarusoRJO. John began his career at Wilshire Quinn Capital, a Wealth Management Firm based out of Los Angeles, California. Prior to becoming a broker he did some individual trading on his own, where he first began to study and interpret different market strategies and ideas. In 2006 John moved over to Lind-Waldock where he began to service clients as a professional broker. He joined RJO Futures in 2011.
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