US equities trade mixed, GM unimpressed by upbeat sales report

Summary:

• S&P 500 (US500 on xStation5) bounces off the 50% Fibo level

• Nasdaq (US100) eyes a test of the 33-period moving average

• General Motors (GM.US) show decent sales growth in the second quarter of the year

After an upbeat session in Europe the major stock benchmarks from Wall Street failed to gain traction in a manner their European peers did. In turn we are observing a mixed session in the US with S&P 500 (US500) and Dow Jones (US30) trading higher and Nasdaq (US100) sitting in the vicinity of yesterday’s close. Keep in mind that the US stock markets will remain closed tomorrow due to the Independence Day. Moreover, because of this today’s session is shortened and will close at 6:00 pm BST.

US500 rebounded off the 50% Fibo level of the February’s rout but failed to break above the 61.8% retracement. The upward move seems to be limited by the 8- and 21-session moving averages. Source: xStation5

It looks like the US500 has finally managed to distance itself from the 50% retracement level of the February’s slump. After few days of trading within the vicinity of the earlier mentioned obstacle benchmark bounced higher. However, as we can see on the daily chart the upward movement has been limited by the 21-session moving average causing the price to retreat towards the 8-session average. The former serves now as a local support level thus a break below could signal another test of the 50% Fibo level in the nearby future. Closure of today’s candlestick may be decisive.

US100 is trading just a notch above the relevant moving average. Will we see a break below or bounce up? Source: xStation5

US100 (Nasdaq futures underlying) may have reached a pivotal point for the short-term price movements. Do notice that the price respected the 33-period moving average on H4 interval several times in the previous days. Right now the index is trading in the vicinity of 7100 pts handle where also the earlier mentioned moving average can be found. If the price is to respect it in similar fashion it used to before we may actually see a stronger rebound. However, in case bears take control over the market we may witness price pulling back towards the supports zone localized around 23.6% retracement level of the decline started in March.

General Motors (GM.US) managed to bounce of the mid-term support zone. However, do notice that 200-session moving average (purple line) crosses with 21-session moving average (yellow line) painting a “death cross”. If this pattern is to be fulfilled more downward pressure may be looming on horizon. Source: xStation5

General Motors (GM.US) has published its sales figures for the second quarter of 2018 earlier today. The company managed to sell 4.6% more vehicles than in the same period year ago. The mediane estimate pointed for a 4.5% increase therefore we were offered a small beat. The company sees outlook for the second half of the year as strong. It is worth to note that the GM’s estimated market share increase by 0.5% YoY to 16.6% in Q2 2018. Inventories are another figures suggesting that the demand for GM vehicles is strong. Dealer inventory at the end of June amounted to 787,500 cars what is 193,000 units less than year ago. Despite the report being positive for the company no major price moves can be spotted.