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May 24, 2023
A quick look at yesterday: a tough session dominated by bearish sentiment left XLP 55 cents lower, while setting a $74.12 to $74.62 session range.
Crude Oil Inventories data from United States will be released today at 14:30 UTC with analysts expecting a decline to -920,000. Potentially significant price fluctuations in Consumer Staples Select Sector SPDR Fund are expected to follow.
Amid the market gloom, United States New Home Sales (Apr) came out at 683,000, while a consensus of analysts was expecting 663,000. United States Services PMI released yesterday at 13:45 UTC with a figure of 55.1, while the previous figure was 53.6. United States Building Permits released yesterday at 12:00 UTC with a figure of 1.15 million, while the previous figure was 1.43 million.
Trend-focused traders would be interested to note that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Asset volatility analysis shows that Consumer Staples Select Sector SPDR Fund's lower Bollinger Band® is at $74.5, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains. A study of Consumer Staples Select Sector SPDR Fund's historical price actions shows Consumer Staples Select Sector SPDR Fund could begin to recover as it approaches significant support, now 20 cents away from $74. Dipping below could be an indication that further losses are ahead.
With market volatility ebbing, the current technical outlook indicates Consumer Staples Select Sector SPDR Fund will remain range-bound for the immediate future.
In the meantime, negative performances are also seen in other markets, Stryker is down to $274.16, losing $12, after ending the previous session around $286.17. Novo Nordisk is down to $163.48, losing $7.04, after ending the previous session around $170.52. Visa Inc. falls 2.9% yesterday and closed at $231.28.
With markets struggling for positive sentiment, upcoming macro data could potentially attract buyers in the market as today at 14:30 UTC data for United States Crude Oil Inventories will be released, with an expected decline to -920,000 from the preceding figure of 5 million. United States Initial Jobless Claims projected to decline to 250,000 while previous data was 242,000; data will be released tomorrow at 12:30 UTC.
Some optimism can drawn from the fact that United States Pending Home Sales is projected to outperform its last figure with 0.5%. It previously stood at -5.2%; data will be released tomorrow at 14:00 UTC.
Approximately 23 days ago, Consumer Staples Select Sector SPDR Fund reached a significant high of $77.5 but has struggled to hold onto its gains and declined 3.52% since then.
