Sluggish markets as Tech Earnings season kicks into high gear

$E-mini S&P 500 Futures(SEP4)(ESmain.US)$ (4 Hour Chart) -[BEARISH ↘ **] We stay bearish on S&P as further weakness is still expected. As long as price is holding below 5630.75 resistance, a further push lower towards 5544.25 support can be expected. Technical indicators are leaning more towards a bearish scenario. Price is holding below 13 period EMA and MACD is turning lower, showing a build up in short term bearish momentum.

$USD(USDindex.FX)$ (4 Hour Chart) -[NEUTRAL] DXY currently holding below key resistance at 104.550 but technical indicators are leaning towards a bullish scenario. We prefer to stay neutral for now. A candlestick close above 104.550 resistance will open a further rise towards 104.670.

$Gold Futures(AUG4)(GCmain.US)$ (4 Hour Chart) -[BEARISH ↘ *] Gold price is currently holding below near-term support at 2424.50. We stay bearish below this level, expecting price to do a pause before shaping a fresh drop towards 2385.20 support. Technical indicators are advocating for a bearish scenario as well. Price is holding below 21 period EMA.

$Nikkei 225(.N225.JP)$ (4 Hour Chart) -[BEARISH ↘ **] Nikkei225 is currently moving downwards. We stay bearish as long as price holds below 40000 resistance level. We expect price to drop towards 38000 support level. Technical indicators are leaning towards a bearish scenario.

$HSI Futures(JUL4)(HSImain.HK)$ (4 Hour Chart) -[BULLISH↗ *] HSI is currently in a ranging market. We maintain a bullish directional bias as long as price holds above 17300 support level. We expect price to drift upwards to 17900 resistance level. Technical indicators have yet to advocate for bullish scenario.

$FTSE Singapore Straits Time Index(.STI.SG)$ (4 Hour Chart) -[BULLISH↗ **] We stay bullish on STI as long as price holds above 3430 support level. We expect price to rise towards 3510 resistance level. Technical indicators are leaning towards a bullish scenario as well. A 4 hour candlestick opening above 3510 resistance level would allow for a drift towards 3550 resistance level.

US equity markets saw further weakness last night despite a brief pause earlier on Monday. The $E-mini S&P 500 Futures(SEP4)(ESmain.US)$ and $E-mini NASDAQ 100 Futures(SEP4)(NQmain.US)$ both dropped by -0.20% and -0.38% respectively. This happened due to a lackluster start to the US tech earnings season yesterday. $Tesla(TSLA.US)$ earnings once again disappointed. $Alphabet-C(GOOG.US)$ despite beating earnings, fell short of the stellar performance last seen in the previous quarter. The tech sector isn't the only one that is sluggish. According to Bloomberg, $United Parcel Service(UPS.US)$ also suffered its worst plunge ever on a profit miss. As the earnings season kicks into high gear, traders will also be on the look out for PMI numbers later this evening.

Asian markets opened lower this morning as well, in line with the overnight dip in the US markets. $HSI Futures(JUL4)(HSImain.HK)$ dropped the most by -0.43% this morning as investor sentiment continues to add to the drag in the market with no clear initiatives to support the financial markets following the close of China's 3rd Plenum. This is also despite the easing that BoC took on Monday. Consumer, technology and manufacturing sector showed the most weakness. $Nikkei 225(.N225.JP)$ also opened lower by -0.23% as the financial and consumer and transportation sector extended their losses further. It did not help the situation with the JPY strengthening further due to the cautious sentiment seen across the markets. Singapore's $FTSE Singapore Straits Time Index(.STI.SG)$ dipped by -0.11% as well mirroring the move in the major indices.

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