TheStrategyLab.com Price Action Trading Support Forum

Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)
Phone: +1 708 572-4885
Free Chat Room: http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164
Business Hours: 8am - 5pm est (Mon - Fri)
questions@thestrategylab.com (24/7)
http://twitter.com/wrbtrader (24/7)


click on the above image to view today's performance verification

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $2,400.00 dollars or +24.00 points, Emini ES ($ES_F) futures @ $0.00 dollars or +0.00 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $2,400.00 dollars

Russell 2000 Emini TF Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ The ICE
S&P 500 Emini ES Futures: 1 tick or 0.25 = $12.50 dollars and there's more contract information @ CMEGroup
Light Crude Oil CL (WTI) Futures: 1 tick or 0.01 = $10.00 dollars and there's more contract information @ CMEGroup
Gold GC Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ CMEGroup
EuroFX 6E Futures: 1 tick or 0.0001 = $12.50 dollars and there's more contract information @ CMEGroup

In addition, all of my trades were posted real-time in the timestamp ##TheStrategyLab chat room. You can read today's price action trading information about my trades (e.g. time, price entry, contract size, price exit) as the trade traversed to its completion. Also, sometimes I'll post real-time trading tips involving WRBs, WRB Hidden GAPs, Key Market Events (KME), Tutorial Chapters 2 & 3, WRB Zones, Reaction Highs/Lows, Contracting Volatility or Expanding Volatility. Its all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=133&t=1856


Also, posted below are direct links to information about my price action trade methodology and trading plan (there's a difference between the two) that enables me to identify key trading areas in the price action that represent changes in supply/demand and volatility along with being able to exploit these changes via WRB Analysis (wide range body/bar analysis). I'm primarily a day trader because it suits my personal lifestyle but I do occasionally swing trade and position trade. Simply, my trade method is applicable for position trading, swing trading and day trading.

##TheStrategyLab Chat Room is free. Members and I use the chat room to post WRB Analysis commentary, real-time trades and to post anything else related to trading. The chat room helps me tremendously in my own trading because I use it to document (journal) general volatility analysis involving WRB Analysis so that I can easily review at a later date my thoughts as I interacted with the markets...info I can not get from my broker statements. Also, this is not a signal calling chat room where a head trader tells you when to buy or sell and I do not have the time/energy/resources to manage a signal calling chat room. Access instructions for chat room @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164

Price Action Analysis via WRB Analysis Tutorials @ http://www.thestrategylab.com/WRBAnalysisTutorials.htm and there's a free study guide of the WRB Analysis Tutorial Chapters 1, 2 and 3 @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=119&t=718

Trade Signal Strategies via Volatility Trading Report (VTR) @ http://www.thestrategylab.com/VolatilityTrading.htm and there's a free trade signal strategy @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=89 so that you can freely test drive one of our price action trade strategies with support (answering your questions) prior to purchasing the Volatility Trading Report (VTR).

Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=244&t=2455

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Market Context Summaries

The below summaries by Bloomberg, CNNMoney, Reuters and Yahoo! Finance helps me to do a quick review of the fundamentals, FED/ECB/BOE/IMF actions or any important global economic events (e.g. Eurozone, MarketWatch.com) that had an impact on today's price action in many trading instruments I monitor during the trading day. Simply, I'm a strong believer that key market events causes key changes in supply/demand and volatility resulting in trade opportunities (swing points and strong continuation price actions) that reach profit targets. Thus, I pay attention to these key market events, intermarket analysis (e.g. Forex EurUsd, EuroFX 6E futures, Gold GC futures, Light Crude Oil (WTI) CL & Brent Oil futures, Eurex DAX futures, Euronext FTSE100 futures, Emini ES futures, Emini TF futures, Treasury ZB futures and U.S. Dollar Index futures) while using WRB Analysis from one trade to the next trade to give me the market context for price action trading before the appearance of my technical analysis trade signals. Therefore, I maintain these archives to allow me to understand what was happening on any given trading day in the past involving key market events to help better understand my trade decisions (day trading, swing trading, position trading)...something I can not get from my broker statements alone. Further, most financial websites remove (delete) their archives after a few years to make room for new content. Therefore, I maintain my own archives of the news content so that I have it available for me when financial websites no longer archives their content.

Market Jitters Return. Dow Drops 140 Points


click on the above image to view today's price action of key markets

NEW YORK (CNNMoney)
Geopolitical risk reared its ugly head once again, sending stocks down, down, down Tuesday.

The Dow and S&P 500 are back at the levels they last saw in May. The Dow finished the day down 140 points (0.8%) while the S&P 500 ended down almost 1%.

1) What's causing this panic? The main trigger for today's sell-off appears to have been renewed fears that Russia will invade Ukraine, as Poland's foreign affairs minister said such an offensive was imminent. Russian troops gathered at Ukraine's border and heightened fears that they are preparing to make a move.

But this has been a building political situation for months. Today's pullback might simply be the natural course of the market, which can be especially volatile during the summer months when investors head off on vacation and the number of shares trading hands falls.

"It's as if someone flipped a switch in the afternoon, and it's hard to know if there's a real cause," said Art Hogan, chief market strategist at Wunderlich Securities.

John Guarino, co-founder of hedge fund Quad Capital put it this way: "I don't expect a major sell-off here, but I think we haven't put the lows in on this move." He added that he doesn't believe people should be so quickly to buy today. It might be best to see how this latest market twist plays out.

2) The market was in heavy selling mode: The three major indexes -- the Dow, the S&P 500 and the Nasdaq -- were all down more than 1% before rebounding a bit. The Dow is now negative for the year.

Energy stocks got especially hammered -- they were down more than twice the rate of the S&P 500 -- an indication of the role Russia still plays in global energy markets.

"Market doesn't know where it wants to go!! Now we are all gonna have to watch on the sidelines," wrote StockTwits user kaley.

The "fear gauge" that measures market volatility -- the VIX index -- is up a whopping 11.5% and at its highest level since April.

3) After-the-bell news -- Fox calls it off Time Warner pursuit: After ramping up for the biggest media deal ever, Twenty First Century Fox (FOX) called of its pursuit of Time Warner (TWX) (the parent company of CNN and CNNMoney). Fox's shareholders were lukewarm to the idea, and now they're cheering Rupert Murdoch's retreat. Fox shares rose 8% in initial after-hours trading. Time Warner fell 10%.

Groupon (GRPN)is down a whopping 15% after the bell. The company reported lower-than-expected revenues and a weak outlook for the rest of the year.

Disney (DIS) reported earnings that beat Wall Street expectations. Mickey Mouse & Co. benefited greatly from the record-smashing world cup viewership at ESPN, as well as Frozen's world-beating performance at the box office. The stock rose 1% in early after-hours trading.

4) Daytime stock movers -- Target, Coach, Dollar stores, Walgreens: Target (TGT) reported that its holiday-season credit card breach cost $148 million, to be offset with $38 million in insurance money. The company also lowered its guidance for the second quarter's earnings, which come out on August 20. Its stock is down more than 4%, making it one of the worst performers in the S&P 500.

Bloomberg reported that Dollar General (DG), up more than 3%, is weighing a bid for Family Dollar (FDO), which finished 2% higher. It's competing with Dollar Tree (DLTR), down more than 2%, which announced an $8.5 billion for Family Dollar just last week. The dollar store industry is under a lot of pressure as working class families continue to struggle during the recovery. Whichever company fails to acquire Family Dollar will get stuck in a distant, dangerous second place.

Purse and accessory maker Coach (COH) impressed investors with a better-than-expected quarter, but Wall Street's bar was set very low. Sales and profits did not fall as much as anticipated from the same time last year, but they still declined. North American sales dropped 16% in that time, though increasing international sales softened the blow. The stock closed more than 4% higher and led the S&P 500.

Related: Can this British designer save Coach?

Drugstore chain Walgreens (WAG) was down more than 4% on news from Sky News that it won't shift its tax base overseas even though it has acquired British counterpart Boots for £5 billion ($8.4 billion).

5) International Markets: Stocks were mixed in Europe. The Euro Stoxx 50 index and the FTSE 100 in the U.K. finished the day flat. Stocks in Italy and Spain, however, are down 1.6% and 1.4%, respectively. Asian stocks had a mixed day. The Nikkei fell 1%, but Chinese and Indian stocks did well.





4:10 pm: [BRIEFING.COM] The stock market ended the Tuesday session on a broadly lower note. The S&P 500 lost 1.0% with all ten sectors ending in the red. The Russell 2000 outperformed, but still shed 0.3%.

Equity indices were on the defensive from the get-go with the early weakness attributed to disappointing data from overseas. China got the ball rolling overnight with a disappointing HSBC Services PMI report (50.0 from 53.1), which fell to its lowest level on record. Things looked a little bit better in Europe, where Services PMI readings from Germany, Great Britain, and Spain improved, but the overall eurozone reading unexpectedly slipped to 54.2 from 54.4.

Another item that kept dip-buyers on the sidelines was disappointing guidance provided by Target (TGT 58.03, -2.67). The retailer lost 4.4% after priming the market for below-consensus results that will include a $148 million expense stemming from the data breach that occurred last year.

Staying on the earning theme, apparel retailer Coach (COH 35.80, +1.49) rallied 4.3% after reporting better than expected earnings and revenue. For its part, the overall consumer discretionary sector (-0.7%) ended a bit ahead of the broader market.

Outside of the discretionary space, the industrial sector (-0.6%) was the only other cyclical group that was able to finish ahead of the broader market. Dow component Boeing (BA 121.27, +1.34) added 1.1%, which contributed to the relative strength. Transport stocks were not as fortunate with the Dow Jones Transportation Average falling 1.1%.

Other heavily-weighted sectors were not as fortunate with financials (-1.0%) and technology (-0.9%) ending in line with the S&P 500, while energy (-2.1%) lagged throughout the session. Pioneer Natural Resources (PXD 209.98, -12.43) pressured the sector, falling 5.6%, in reaction to below-consensus revenue. Marathon Oil (MRO 38.46, -0.76) also slumped, losing 1.9%, despite its better than expected earnings. Crude oil, meanwhile, fell 1.0% to $97.33/bbl.

Afternoon action saw equities extend their losses with the slide attributed to comments from Polish Foreign Minister Radoslaw Sikorski, who said Russia is poised to pressure or invade Ukraine. However, it is worth noting that the comments did not introduce anything new as Russian troop movements along the border with Ukraine have been watched for months. In all likelihood, the headline was a convenient excuse to take some money off the table after the market could not erase its early loss.

Also of note, the afternoon remarks helped Treasuries recover their intraday losses. The 10-yr note ended flat with its yield at 2.48% after the benchmark yield notched a session high just north of 2.52%.

Participation was a bit below average with fewer than 690 million shares changing hands at the NYSE.

Economic data was limited to Factory Orders and the ISM Services Index:

Factory orders increased 1.1% in June following a downwardly revised 0.6% decline (from -0.5%) in May
The Briefing.com consensus expected factory orders to increase 0.5%
Durable goods orders increased 1.7% in June after declining 0.9% in May, representing a significant upward revision from the advance release (+0.7%)
Excluding transportation, durable goods orders rose 1.9% in June, up from an originally reported 0.8% increase in the advance release
The ISM Non-manufacturing Index increased to 58.7 in July from 56.0, while the Briefing.com consensus expected an increase to 56.5
That was the highest reading since the ISM reformulated the index in January 2008
Including the old survey methods, the index reached its highest level since late 2005

Tomorrow, the weekly MBA Mortgage Index will be reported at 7:00 ET, while the June Trade Balance (Briefing.com consensus -$45.20 billion) will be released at 8:30 ET.

S&P 500 +3.9% YTD
Nasdaq Composite +4.2% YTD
Dow Jones Industrial Average -0.9% YTD
Russell 2000 -3.5% YTD

3:30 pm: [BRIEFING.COM]

Precious metals extended yesterday's losses as a stronger dollar index weighed on prices.
Dec gold slipped into negative territory after pulling back from a session high of $1291.20 per ounce in early morning action. It brushed a session low of $1283.30 per ounce and settled with a 0.3% loss at $1285.10 per ounce
Sep silver fell as low as $19.78 per ounce after retreating form a session high of $20.19 per ounce. Unable to find buying support, it settled at $19.83 per ounce, or 1.6% lower.
Sep crude oil trended lower into negative territory ahead of tomorrow's inventory data. A stronger dollar index also pressured prices.
The energy component pulled back from its session high of $98.15 per barrel and brushed a session low of $97.00 per barrel. It eventually settled with a 1.0% loss at $97.33 per barrel.
Sep natural gas, on the other hand, rose from its session low of $3.84 per MMBtu set in early morning action and traded in a consolidative pattern near the $3.90 per MMBtu level for the remainder of the session. It touched a session high of $3.91 per MMBtu and settled at $3.90 per MMBtu, booking a gain of 1.6%.

3:00 pm: [BRIEFING.COM] The S&P 500 trades lower by 1.0% with one hour remaining in the session. Although the second quarter earnings season is winding down, the remainder of this week will still bring a fair dose of quarterly reports.

Following today's close, investors will receive results from Disney (DIS 86.21, -1.02), EOG Resources (EOG 109.06, -2.75), and First Solar (FSLR 63.38, +0.24), while tomorrow's list will be headlined by Banco Santander (SAN 9.62, -0.32), Mondelez (MDLZ 35.93, -0.52), and Time Warner (TWX 84.72, -0.81). The three names will report their results ahead of the opening bell.

2:30 pm: [BRIEFING.COM] The S&P 500 (-1.0%) has inched to a new low, while the weakest sector of the day-energy-has extended its decline to 2.2%. Equity indices were already engulfed in broad-based weakness when recent comments from the Polish foreign minister on the Ukraine crisis pressured the averages to fresh lows.

Six sectors are now down in excess of 1.0% with influential energy (-2.2%), financials (-1.1%), and technology (-1.1%) among the laggards. The industrial sector, meanwhile, is the top performer, but the group is still down 0.6%.

Treasuries, meanwhile, are now in the green with the 10-yr yield down one basis point at 2.47%.

2:00 pm: [BRIEFING.COM] Recent action saw the major averages drop to fresh session lows amid comments from the Polish Foreign Minister Radoslaw Sikorski, who said Russia is poised to pressure or invade Ukraine. However, it is worth noting that the comments did not introduce anything new and Russian troop movements along the border with Ukraine have been watched for months.

The news has given a boost to the CBOE Volatility Index (VIX 16.38, +1.26) as participants increase their demand for volatility protection in the face of uncertainty.

Outside of weighing on equities, the comments have helped Treasuries return to their flat lines, but the 10-yr note has yet to climb above its flat line. The benchmark yield is currently unchanged at 2.48%.

1:25 pm: [BRIEFING.COM] Today isn't exactly an equal and opposite reaction to yesterday, but it's close. The indices have given back most of Monday's gains and every sector with the exception of the industrials sector (+0.1%) is in negative territory.

The hardest-hit sector of all has been the energy sector (-1.7%), which has been among the biggest losers quarter-to-date with a 4.2% decline. Falling oil prices, weaker production levels, and concerns about business disruptions stemming from the sanctions against Russia have all combined to foster some added selling interest.

The silver lining to the drop in oil prices is that it will translate into a drop in gas prices, which is a good thing for consumers. Crude prices are currently down $1.08 at $97.21/bbl.

Target (TGT 58.66, -2.04) for one should be happy to hear that after warning this morning that its second quarter earnings are going to fall short of analysts' expectations due to data breach expenses and cautious consumer spending in its stores. Its weakness is weighing on the consumer discretionary sector (-0.2%), which is nonetheless outperforming the broader market at this point.

1:00 pm: [BRIEFING.COM] At midday, equity indices trade lower across the board with the S&P 500 showing the largest loss. The benchmark index is lower by 0.6% with all ten sectors on the defensive.

Stocks have spent the entire first half of action in the red with the sentiment taking an overnight hit after China's HSBC Services PMI fell to its lowest level on record. Meanwhile in Europe, Services PMI readings from Germany, Great Britain, and Spain improved, but the overall eurozone reading unexpectedly slipped to 54.2 from 54.4.

The overseas data contributed to a cautious start and weakness among influential sectors like energy (-1.8%), financials (-0.7%), and technology (-0.7%) has kept dip-buyers sidelined.

The energy sector slumped at the open and has been inching lower through the first half. Pioneer Natural Resources (PXD 209.05, -13.36) is a notable laggard, down 6.0% after missing revenue estimates. Crude oil, meanwhile, is lower by 0.9% at $97.39/bbl.

Other cyclical sectors have fared a bit better, but they have yet to erase their losses. The discretionary sector (-0.1%) outperforms amid strength in retailers after Coach (COH 35.95, +1.64) reported above-consensus results. The stock is higher by 4.7%, while the SPDR S&P Retail ETF (XRT 84.82, +0.25) trades up 0.3%.

Elsewhere, the industrial sector (unch) hovers right near its flat line amid relative strength in the shares of Boeing (BA 121.26, +1.33). The Dow component has added 1.1%, but most other members of the price-weighted index trade in the red. On the downside, Intel (INTC 32.93, -0.90) is the weakest Dow component, down 2.7%.

Treasuries have spent the day in the red, but have been climbing off their lows over the past two hours. The 10-yr note is lower by four ticks with its yield up one basis point at 2.50%.

Economic data was limited to Factory Orders and the ISM Services Index:

Factory orders increased 1.1% in June following a downwardly revised 0.6% decline (from -0.5%) in May
The Briefing.com consensus expected factory orders to increase 0.5%
Durable goods orders increased 1.7% in June after declining 0.9% in May, representing a significant upward revision from the advance release (+0.7%)
Excluding transportation, durable goods orders rose 1.9% in June, up from an originally reported 0.8% increase in the advance release
The ISM Non-manufacturing Index increased to 58.7 in July from 56.0, while the Briefing.com consensus expected an increase to 56.5
That was the highest reading since the ISM reformulated the index in January 2008
Including the old survey methods, the index reached its highest level since late 2005

12:30 pm: [BRIEFING.COM] The S&P 500 (-0.6%) has returned to its early low, while the Russell 2000 (+0.1%) and S&P Mid Cap 400 (+0.1%) hover just above their flat lines.

At this time, the industrial sector (+0.1%) is the only group trading in the green with Boeing (BA 121.07, +1.14) providing continued support. However, the relative strength of the Dow component has not really given a boost to the rest of the price-weighted index as only five other index members display gains. On the downside, eight Dow components sport losses of 1.0% or more with Intel (INTC 32.94, -0.89) leading the retreat. The stock trades down 2.6%.

12:00 pm: [BRIEFING.COM] Not much change in the major averages with the S&P 500 trading lower by 0.5%. The benchmark index remains pressured for the time being even as small caps continue showing relative strength (Russell 2000 +0.2%). However, the market has been unable to build on the outperformance of small caps as most sectors remain under pressure.

The weakest sector of the day-energy-has widened its loss to 1.7%, while crude oil has also extended its decline. The energy component is now down 0.9% at $97.44.

Meanwhile, the other commodity-related sector-materials-outperforms with a loss of 0.2%. U.S. Steel (X 34.90, +0.90) is higher by 2.7%, but many other steelmakers trade in the red. The Market Vectors Steel ETF (SLX 48.85, -0.22) holds a loss of 0.5%.

11:30 am: [BRIEFING.COM] The S&P 500 (-0.3%) remains near its recent levels, while the Russell 2000 (+0.3%) has climbed to a fresh session high.

The small-cap Russell 2000 slumped into the end of July, but has shown relative strength in the first few sessions of this month. The index is higher by 0.8% so far in August versus an uptick of 0.1% for the S&P 500. Despite the recent show of strength, the Russell 2000 remains roughly 20 points below its 200-day moving average (1145).

Elsewhere, Treasuries have dipped to a new low. The 10-yr yield is now higher by three basis points at 2.52%.

10:55 am: [BRIEFING.COM] The S&P 500 (-0.3%) has climbed off its session low, but remains in the red as eight sectors continue holding losses. The energy sector (-0.9%) is the weakest group of the day, while crude oil trades down 0.5% at $97.77/bbl.

On the upside, the industrial sector (+0.3%) is the lone advancer among cyclical groups. Dow component Boeing (BA 121.70, +1.77) has contributed to the relative strength as the stock trades higher by 1.5%.

Transport stocks also trade ahead of the broader market, but the Dow Jones Transportation Average (-0.1%) has yet to make an appearance in the green. Only seven index components display losses, but Expeditors International (EXPD 41.70, -2.21) trades down 4.8% after missing bottom-line estimates by a cent.

10:35 am: [BRIEFING.COM]

Commodities sold off in recent action as the dollar index continued to climb higher and higher.
Crude oil, copper, gold and silver all hit new lows for the day a few minutes ago.
Crude oil fell below $98/barrel, silver fell below $20/oz, gold remains below $1300/oz.
Sept crude fell as low as $ and is - % at $ /barrel in current trade.
Corn futures are down 0.8% at $3.56/bushel this morning, despite somewhat bullish data from the USDA.
At the close yesterday, the agency issues its weekly crop progress report, which showed that corn in good/excellent condition has declined to 73%, down from 75%. However, this remains well above last year's rate of 64%.
Dec gold is currently -0.4% at $1284.30/oz, Sept silver is -1.9% at $19.86/oz and Sept copper is -1.1% at $3.21/lb
Natural gas, on the other hand, put in a small rally this morning (from $3.83 to $3.91) and is sitting near its HoD in current trade, now at $3.90/MMBtu, up 1.6%.
Sept crude is currently -0.5% at $97.81/barrel

10:00 am: [BRIEFING.COM] The S&P 500 (-0.5%) remains near its worst level of the session.

The just-released factory orders report for June indicated orders increased 1.1%, which was better than the Briefing.com consensus estimate that called for an increase of 0.5%. The May reading was revised down to -0.6% from -0.5%.

Separately, the ISM Services Index for July jumped to 58.7 from 56.0, while the Briefing.com consensus expected an uptick to 56.5.

9:40 am: [BRIEFING.COM] As expected, the major averages began the session in the red with the Russell 2000 (-0.5%) leading the early slide. For its part, the S&P 500 trades lower by 0.4% with nine sectors on the defensive.

Cyclical sectors outperformed yesterday, but they have started today's affair on a broadly lower note. Energy (-0.8%), materials (-0.7%), and technology (-0.6%) trail the broader market, while the financial sector (-0.3%) is the lone outperformer among cyclical groups.

Things look slightly better on the countercyclical side with health care (-0.4%), telecom services (-0.3%), and utilities (-0.2%) showing losses comparable to the S&P 500, while the consumer staples sector (+0.1%) holds a slim gain.

Despite the early weakness in equities, Treasuries have held near their lows. The 10-yr note is lower by five ticks with its yield up two basis points at 2.50%.

9:10 am: [BRIEFING.COM] S&P futures vs fair value: -8.80. Nasdaq futures vs fair value: -19.80. The stock market is on course for a lower start to the Tuesday session with futures on the S&P 500 trading nine points below fair value. Index futures have spent the bulk of the night in the red with a disappointing HSBC Services PMI report from China (50.0 from 53.1) weighing on the sentiment.

Meanwhile in Europe, the Eurozone Services PMI also retreated, slipping to 54.2 from 54.4 (expected 54.4) as Italy worsened (52.8 from 53.9), while Germany (56.7 from 56.6), Great Britain (59.1 from 57.7), and Spain (56.2 from 54.8) improved. For its part, France saw its reading hold steady at 50.4, as expected.

Back in the U.S., participants have been responding to a batch of corporate earnings, but there was also a warning out of the retail space. Specifically, Target (TGT 57.90, -2.80) lowered its Q2 guidance, citing expenses related to the data breach that took place at the end of last year. The retailer is on track to open lower by 4.6%.

Treasuries hold modest losses with the 10-yr yield up two basis points at 2.50%.

8:57 am: [BRIEFING.COM] S&P futures vs fair value: -7.60. Nasdaq futures vs fair value: -18.00. The S&P 500 futures trade eight points below fair value.

Asian markets ended the session on a mostly lower note. In central bank news, the Reserve Bank of India kept its repo rate on hold at 8.00% and talked tough on inflation, while the Reserve Bank of Australia also held its key rate steady at 2.50%, while suggesting the Aussie dollar remains too strong.

In economic data:
China's HSBC Services PMI fell to 50.0 from 53.1
Hong Kong's Manufacturing PMI ticked up to 50.4 from 50.1
Australia's trade deficit narrowed to $1.68 billion from $2.04 billion (expected deficit of $1.90 billion) as imports declined 1.0% (previous -1.0%) and exports held steady (last -5.0%). Separately, AIG Services Index improved to 49.3 from 47.6
Indonesia's GDP rose 2.5% quarter-over-quarter (expected 2.6%, previous 1.0%), while the year-over-year reading increased 5.1% (expected 5.3%, previous 5.2%)

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Japan's Nikkei lost 1.0%, falling for a fourth straight session. Toyota Motor finished unchanged ahead of its earnings report.
Hong Kong's Hang Seng added 0.2%, holding near its best levels of 2014. Internet gaming co Tencent Holdings led the advance, tacking on 3.3%.
China's Shanghai Composite shed 0.2%, slipping from its best levels in eight months. Real estate shares were pressured as Poly Real Estate and China Vanke surrendered 1.7% and 2.1%, respectively.

Major European indices trade mostly higher, while Italy's MIB (-0.8%) and Spain's IBEX (-0.6%) underperform. In general, the markets have been supported by upbeat earnings, while regional PMI readings were mixed.

Participants received several data points:
Eurozone Retail Sales ticked up 0.4% month-over-month, as expected, while the year-over-year reading increased 2.4% (consensus 1.2%, previous 0.6%). Separately, Services PMI slipped to 54.2 from 54.4 (expected 54.4)
Germany's Services PMI ticked up to 56.7 from 56.6 (expected 56.6)
Great Britain's Services PMI rose to 59.1 from 57.7 (expected 57.9)
French Services PMI held steady at 50.4, as expected
Italy's Services PMI slipped to 52.8 from 53.9 (consensus 54.0)
Spain's Services PMI jumped to 56.2 from 54.8 (forecast 55.1)

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Great Britain's FTSE is higher by 0.2%. Weir Group leads with a gain of 2.6% after ending its broker agreement with Bank of America/Merrill Lynch. The move has led to speculation about a potential takeover. Meggitt is the weakest performer, down 6.7% after lowering its guidance.
In France, the CAC trades up 0.5% with Credit Agricole in the lead. The stock is higher by 4.1% in reaction to upbeat earnings. Industrial names lag with Airbus and Renault down 1.7% and 1.3%, respectively.
Germany's DAX holds an advance of 0.5%. Deutsche Post leads with an earnings-driven gain of 2.6%, while financials lag. Deutsche Bank and Commerzbank are both down near 1.5%.
Italy's MIB trades down 0.8% amid weakness in blue chip names. Telecom Italia is lower by 4.5% after Spain's Telefonica made an offer for Brazil's GVT.

8:25 am: [BRIEFING.COM] S&P futures vs fair value: -8.60. Nasdaq futures vs fair value: -19.30. U.S. equity futures continue hovering near their lows and if the current indication holds, the stock market will have to fight to reclaim some of yesterday's gains that have been surrendered in overnight action.

The cautious sentiment was on display in Asia where most indices posted losses. Notably, China's HSBC Services PMI fell to 50.0 from 53.1, which represents the lowest reading on record. However, China's Shanghai Composite (-0.2%) took the news relatively well.

Domestically, there was no pre-market data for the second day in a row, but June Factory Orders (Briefing.com consensus 0.5%) and the ISM Services Index for July (consensus 56.5) will both be reported at 10:00 ET.

On the corporate front, shares of Target (TGT 58.15, -2.55) are lower by 4.2% in pre-market action after the retailer lowered its guidance for the second quarter.

7:56 am: [BRIEFING.COM] S&P futures vs fair value: -6.40. Nasdaq futures vs fair value: -15.30. U.S. equity futures hover near their pre-market lows amid mixed action overseas. The S&P 500 futures trade six points below fair value.

Reviewing overnight developments:

Asian markets ended on a mixed note. Hong Kong's Hang Seng +0.2%, China's Shanghai Composite -0.2%, and Japan's Nikkei -1.0%
In economic data:
China's HSBC Services PMI fell to 50.0 from 53.1
Hong Kong's Manufacturing PMI ticked up to 50.4 from 50.1
Australia's trade deficit narrowed to $1.68 billion from $2.04 billion (expected deficit of $1.90 billion) as imports declined 1.0% (previous -1.0%) and exports held steady (last -5.0%). Separately, AIG Services Index improved to 49.3 from 47.6
Indonesia's GDP rose 2.5% quarter-over-quarter (expected 2.6%, previous 1.0%), while the year-over-year reading increased 5.1% (expected 5.3%, previous 5.2%)
In news:
The Reserve Bank of Australia held its key interest rate unchanged at 2.5%, as expected. Also of note, most analysts expect the central bank to maintain its current policy stance through the end of the year.
The Reserve Bank of India also held its main interest rate unchanged at 8.0%, as expected.

Major European indices trade mostly higher. Great Britain's FTSE +0.4%, Germany's DAX +0.5%, and France's CAC +0.6%. Elsewhere, Italy's MIB -0.7% and Spain's IBEX -0.2%
Participants received several data points:
Eurozone Retail Sales ticked up 0.4% month-over-month, as expected, while the year-over-year reading increased 2.4% (consensus 1.2%, previous 0.6%). Separately, Services PMI slipped to 54.2 from 54.4 (expected 54.4)
Germany's Services PMI ticked up to 56.7 from 56.6 (expected 56.6)
Great Britain's Services PMI rose to 59.1 from 57.7 (expected 57.9)
French Services PMI held steady at 50.4, as expected
Italy's Services PMI slipped to 52.8 from 53.9 (consensus 54.0)
Spain's Services PMI jumped to 56.2 from 54.8 (forecast 55.1)
Among news of note:
European markets have been supported by better than expected earnings from BMW, Credit Agricole, and Deutsche Post. Credit Agricole and Deutsche Post hold respective gains of 2.7% and 4.1%, while BMW trades flat.

In U.S. corporate news:

Coach (COH 36.61, +2.30): +6.7% following its better than expected earnings and revenue
CVS Caremark (CVS 79.15, +1.78): +2.3% after beating estimates and guiding in line
Gannett (GCI 36.50, +2.18): +6.4% after announcing plans to separate its broadcasting and publishing businesses. Separately, the company has acquired Tribune's (TRBAA 84.40, 0.00) 27.8% stake in Classified Ventures.
GT Advanced Technologies (GTAT 15.75, +1.62): +11.5% after its better than expected guidance overshadowed its disappointing results
Motorola Solutions (MSI 61.00, -3.11): -4.9% after reporting Q2 earnings of $0.47, which may not compare to the Capital IQ consensus estimate
Office Depot (ODP 5.54, +0.43): +8.4% in reaction to its in-line results.
Regeneron Pharmaceuticals (REGN 321.00, -4.44): -1.4% despite beating on earnings and revenue
Tenet Healthcare (THC 53.25, -0.05): -0.1% after beating bottom-line estimates on light revenue and guiding Q3 earnings below consensus

June Factory Orders (Briefing.com consensus 0.5%) and the ISM Services Index for July (consensus 56.5) will both be reported at 10:00 ET.

6:46 am: [BRIEFING.COM] S&P futures vs fair value: -4.50. Nasdaq futures vs fair value: -13.50.

6:46 am: [BRIEFING.COM] Nikkei...15320.31...-154.20...-1.00%. Hang Seng...24648.26...+48.20...+0.20%.

6:46 am: [BRIEFING.COM] FTSE...6702.35...+24.70...+0.40%. DAX...9210.95...+56.80...+0.60%.

Special thanks to Bloomberg, CNNMoney, Reuters and Yahoo! Finance for their market summaries.

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
@ http://twitter.com/wrbtrader @ http://stocktwits.com/wrbtrader

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