Recap 2014-08-15


The S&P bounced sharply off intraday lows, which appears to be a positive, but on the daily candles, it has not been able to rally above resistance, which is a combination of the previous support area prevailing during most of July, as well as the 50 day moving average. With the positive bias from option expiry week over, the risk is another downturn next week:

Price action in sovereign yields look exhaustive. A bounce seems likely next week, although for how long and how far remains an open question:

Very interesting:


  • Canadian Employment Revision:
  1. Employment +41.7k vs 20k prev, driven by part timers
  2. UER declined to 7.0% vs 7.1% prev, participation rate was stable as exp

US Empire Mfg declined to 14.69 vs 20 exp and 25.6 prev

UMichigan Confidence declined to 79.2 vs 82.5 exp and 81.8 prev

US Core PPI declined to 1.6% YoY as exp vs 1.8% prev


  • Mon: US NAHB, RBA Minutes
  • Tue: UKCPI, USCPI, US Housing Starts, Building Permits,
  • Wed: BoE Minutes, Fed minutes, Japan PMI, China HSBC PMI
  • Thu: EU PMI, US Jobless Claims, Markit PMI, Philly Fed, Existing Home Sales, EU Consumer Confidence