Big tech falls out of favour for now as investors look to big banks' earnings

$E-mini S&P 500 Futures(SEP4) (ESmain.US)$ (4 Hour Chart) -[BULLISH ↗ *] S&P took a pause and retreated lower yesterday. We maintain our bullish directional bias with lowered conviction. As long as price is holding above 5630.50 support, a bounce reaction towards 5692.25 resistance is expected. Technical indicators are still advocating for a bullish scenario.

$USD (USDindex.FX)$ (4 Hour Chart) -[BULLISH ↗ **] As expected, DXY dropped and reached previous target. We now turn bullish on DXY, expecting price to bounce above 104.320 support towards 104.815 resistance. Price is holding below 34 period EMA however stochastic indicator is bouncing above suppport where price bounced in the past as well.

$Gold Futures(DEC4) (GCmain.US)$ (4 Hour Chart) -[BEARISH ↘ *] Gold prices pushed higher and is now holding below near-term resistance at 2424.50. We turn bearish with low conviction for now, expecting price to drift lower towards 2400.00 support. While price is holding above 21 period EMA, stochastic indicator is testing resistance where price pulled lower in the past.

$Nikkei 225 (.N225.JP)$ (4 Hour Chart) -[BULLISH ↗ *] Nikkei225 took a dip from previous swing high and is back above near-term support or key support. We remain bullish on price movements as price reaches 41400 support level. We expect price to hold above the 41400 support level before moving towards 42700 resistance level. Technical indicators lean towards a bullish scenario.

$HSI Futures(AUG4) (HSImain.HK)$ (4 Hour Chart) -[BULLISH↗**] HSI shaped a bullish brekaout of the falling wedge pattern, and is currently on an uptrend. We have a bullish directional bias, and expect prices to drift towards 18940 resistance level. Technical indicators advocate for a bullish run/view/scenario.

$FTSE Singapore Straits Time Index (.STI.SG)$ (4 Hour Chart) -[BULLISH ↗ **] As expected, STI pushed higher and is still currently on an uptrend. We maintain our bullish view on price, and expect price to test and hold above 3465 support level before rallying up to 3570 resistance level. Technical indicators are showing a bullish scenario.

US markets saw a pause in the relief rally last night. This comes as the CPI numbers drifted lower and show that inflation is slowing further, increasing the probablitly of a US Fed rate cut this september. Investors also seem to be lightening their load on AI plays and looking to rotate to other sectors ahead of the banks announcement of their earnings for this quarter. The $E-mini S&P 500 Futures(SEP4) (ESmain.US)$ and $E-mini NASDAQ 100 Futures(SEP4) (NQmain.US)$ were down -0.85% and -2.19% respectively. Traders will be looking forward to tonight's PPI data.

Asian markets are mixed today, with $HSI Futures(AUG4) (HSImain.HK)$ rallying the most at 2.14%. This is led by the tech and commerce sector boosting the growth. This is with strong positive sentiments of the possible rate cuts by Fed. Traders should take note of the Chinese government's Third Plenum taking place next Monday, where major reforms and policy decisions take place. $Nikkei 225 (.N225.JP)$ drifted downwards by 2.17%. This comes about with the rally of Yen yesterday, which pushed for traders to enter into a sell-off of Japanese stocks. Traders are leaning towards negative sentiments for JPY due to possible speculation of Japan's intervention in forex. $FTSE Singapore Straits Time Index (.STI.SG)$ moved up by 0.49%, mainly due to the gains in the finance sector.

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