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Japans core machinery orders rose 9.7% month-on-month in June, below the expected 7.80% and the previous months -12.40%.Japans core machinery orders rose 16.9% year-on-year in June, below the expected 10.8% and the previous reading of -1.90%.August 19th - Today (August 19th), the Zhuque-3 Y2 carrier rocket was launched from the Dongfeng Commercial Aerospace Innovation Test Zone. The first stage of the rocket successfully landed at the Zhuque-3 landing site in Minqin County, Gansu Province, according to the predetermined procedure. This is another major breakthrough for my country in key technologies for reusable rockets, and the Zhuque-3 has become my countrys first carrier rocket to successfully enter orbit and be recovered on land.August 19th - Despite a sharp rise in oil costs, the proportion of Japanese companies exceeding earnings expectations reached a five-year high, leading to widespread optimism that strong profit growth across industries will drive a market rebound, extending beyond artificial intelligence-related trades. Data shows that in the three months ending in June, approximately 71% of Japanese companies exceeded analysts forecasts, with the combined net profit of the 500 largest companies reaching 21 trillion yen (approximately $132 billion), surpassing the record of approximately 18 trillion yen set a year ago. Corporate profitability has also improved significantly, with the profit margin of TOPIX constituent stocks expected to reach 9.3%, the highest level for similar data in over three decades. These results suggest that the Japanese stock market rally may be entering a new phase. While last quarters growth was primarily concentrated in technology and AI-related companies, the latest earnings season shows that profit growth is expanding into a broader range of sectors as companies successfully pass on higher costs to customers. "Not only exporters and semiconductor-related companies are outperforming expectations," said a strategist at Resona Holdings, "we are seeing domestic demand-driven companies outperforming expectations. Investor interest has broadened compared to before, and I think this trend will continue."August 19th - According to the latest report from AFP, British Prime Minister Andrew Burnham confirmed on the 18th that he had exchanged messages with someone impersonating Susie Wiles, the White House Chief of Staff. The report stated that Burnham discussed the matter during a visit to Wolverhampton, a city in central England, saying that "nothing sensitive was discussed in the exchange." When asked if he was embarrassed by being deceived, Burnham replied, "No, Im not embarrassed because it was a very brief exchange, nothing substantial. And I quickly realized I needed to report it, and I did." US media reported that on the 17th, a reporter asked US President Trump if he was concerned about the matter. Trump responded that he believed it was just a "communication misunderstanding" and said he had had several "very good conversations" with Burnham.

E-mini S&P 500 Index: Tough to Sustain Rally without More Solid Support Base

Cory Russell

May 06, 2022 11:18

Investors are anxious that the Federal Reserve's rate rise would not be enough to contain inflation, and that the US central bank will have to take more harsh measures. After reversing all of yesterday's gains, June E-mini S&P 500 Index futures are trading down late in the afternoon on Thursday.


At 18:29 GMT, June E-mini S&P 500 Index futures were trading at 4125.50, down 169.75 or 3.95 percent. The S&P 500 Trust ETF has dropped 16.77 percent to $412.29.


On Wednesday, the Federal Reserve raised interest rates by half a percentage point, as expected, and Fed Chair Jerome Powell expressly ruled out a 75-basis-point increase at a future meeting.


Only 22 S&P 500 index members were in the green at 18:00 GMT. In addition, all 11 of the major S&P sectors are down, with consumer discretionary leading the pack.

The Daily Swing Chart's Technical Analysis

The primary trend is down, according to the daily swing chart. A move through 4056.00 will herald the resumption of the downtrend. If the price breaks through 4509.00, the primary trend will shift to the upside.


The little declining tendency is still present. Taking out 4303.50 will move the minor trend higher and transfer momentum to the upside.


The minor range is 4303.50 to 4056.00. The 50 percent mark is at 4179.75, which is the nearest resistance. The second closest resistance is a 50% level at 4343.50.

Prospects in the Short Term

The reaction of traders to 4179.75 will likely determine the direction of the June E-mini S&P 500 Index into Thursday's close.

Negative Predictions

A prolonged rise below 4179.75 will signal the presence of sellers. If enough negative momentum develops, expect the selling to extend towards the major bottom around 4056.00.


If 4056.00 is taken out, a quick test of the main bottom at 4020.50 is expected on May 12, 2021. This might be the turning point in a downward trend.

Optimistic Outlook

A sustained move over 4179.75 will show the presence of buyers. If there is enough upward momentum, look for a late-session burst over the resistance cluster around 4282.50 – 4303.50.