Market Intelligence

Equity Market Insight from Nasdaq MID - May 18, 2017

Thursday, May 18, 2017, 11:45 AM, EST

  • NASDAQ Composite +0.4% Dow +0.09% S&P 500 +0.22% Russell 2000 +0.34%
  • NASDAQ Advancers: 1250 / Decliners: 899
  • Today’s Volume (100day avg): +17%

Markets are staging a slight rebound this morning after a savage beat-down during yesterday’s trading. 9 out 11 sectors have opened to the upside, led higher by Telecom (+1.1%) and Consumer Discretionary (+0.7%). Stocks in Brazil are hemorrhaging with equities off more than 8% on the heels of government turmoil.

  • A fresh political crisis is hitting Brazil, reminiscent of last year's impeachment saga, following reports that President Temer was secretly recorded discussing hush money pay-offs to a jailed associate. According to O Globo, the tapes were presented to prosecutors as part of a plea bargain by Joesley and Wesley Batista, brothers who run the country's biggest meat-packing firm JBS.
  • Crude Oil erased its overnight loses and the price per barrel is now edging higher after the OPEC members appear to be supportive of an 9 month extension for the production cut agreement. An extension would be considered a bullish signal for Oil prices, as global inventory remains elevated.
  • Incyte is the best performer on the S&P 500, up more than 7% after the company made some optimistic findings in their lung cancer drug study. The company presented at the annual ASCO conference in San Francisco after the market closed yesterday.

Technical Take:

Yesterday’s sell-off accelerated throughout the session as US stock finished the day at their lows, which typically sets up for a downward trend for the following session. The S&P 500 suffered its steepest drop since 9/9/16, on 22% higher than normal volume, suggesting conviction behind the price action. The closely watched CBOE Volatility Index or “Fear” Index jolted by 46%, and has gained 4 out the past 5 days. Last Wednesday, Jeffrey Gundlach of Doubleline Capital stated, “I think the VIX is insanely low. Anytime the VIX is below 10, if you could actually buy it, you should.” The last time the VIX weakened below 10 was December 2006, and represents a long-term support level.

Yesterday’s Trading: SPY ETF vs VIX Index

Nasdaq's Market Intelligence Desk (MID) Team includes:

Michael Sokoll, CFA 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.

Jeffrey LaRocque 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.

Steven Brown 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.

Christopher Dearborn 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.

Annie O'Callaghan 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.

Brian Joyce, CMT 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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