Equity Market Insight from Nasdaq MID - August 3, 2016 Afternoon Update

Stocks are little changed this afternoon, while Oil prices continue to press higher. Looking at earnings after the close, Weekly Jobless Claims (8:30am) and June Durable Goods (10am) as catalyst for tomorrow’s trading.

Yesterday the S&P 500 declined below the key 2,160 support line, and with that, broke a streak of sixteen straight sessions where it traded in a range of less than 1%. The 60-minute period chart below shows the index carved out a bullish reversal candlestick, the hammer, at yesterday’s 2,147 low and has since bene rallying. The SPX has now returned to “retest” the 2,160 level. A retest of a prior support/resistance level following a breakout is common technical price action and can be used both to confirm the validity of the new trend as well as present attractive risk-reward entries for investors. Confirmation of yesterday’s breakdown should result in the 2,160 level, which previously has been support, now turning into resistance. In this scenario price will fade from here and reverse back to the downside. Conversely if the SPX can successfully reclaim 2,160, yesterday will be viewed as a “false move”. In either case 2,160 provides a clearly defined risk-reward level to measure risk for both buyers and sellers.

is a Senior Managing Director on the Market Intelligence Desk (MID) at Nasdaq with over 25 years of equity market experience. In this role, he manages a team of professionals responsible for providing NASDAQ-listed companies with real-time trading analysis and objective market information.

is a Director on the Market Intelligence Desk (MID) at Nasdaq, covering U.S. equities with over 10 years of experience having learned market structure while working on institutional trading desks and as a stock surveillance analyst. Jeff's diverse professional knowledge includes IPOs, Technical Analysis and Options Trading.

is a Managing Director on the Market Intelligence Desk (MID) at Nasdaq with over twenty years of experience in equities. With a focus on client retention he currently covers the Financial, Energy and Media sectors.

is a Managing Director on the Market Intelligence Desk (MID) at Nasdaq. Chris has over two decades of equity market experience including floor and screen based trading, corporate access, IPOs and asset allocation. Chris is responsible for providing timely, accurate and objective market and trading-related information to Nasdaq-listed companies.

is Director on the Market Intelligence Desk (MID) at Nasdaq. Annie has worked for NASDAQ in a variety of roles including support of Nasdaq C-level management in client retention and customer service. Annie also served as a Sales Director in Nasdaq’s Transactions Services business. Prior to joining Nasdaq, Annie worked at AX Trading, managing accounts for its Alternative Trading System and served on Credit Suisse's trading desk as an Electronic & Algorithmic Sales Trading Analyst.

has 16 years of trading desk experience. Prior to joining Nasdaq Brian executed equity orders and provided trading ideas to institutional clients. He also contributed technical analysis to a fundamental research offering. Brian focuses on helping Nasdaq’s Financial, Healthcare and Airline companies among others understand the trading in their stock. Brian is a Chartered Market Technician.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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