TheStrategyLab.com Price Action Trading Support Forum

Trade Results of M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
Price Action Trading (no technical indicators)
Phone: +1 708 572-4885
Free Chat Room: http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164
Business Hours: 8am - 5pm est (Mon - Fri)
wrbanalysis@gmail.com (24/7)
http://twitter.com/wrbtrader (24/7)


click on the above image to view today's performance verification

Price Action Trade Performance for Today: Emini TF ($TF_F) futures @ $0.00 dollars or +0.00 points, Emini ES ($ES_F) futures @ $5437.50 dollars or +108.75 points, Light Crude Oil CL ($CL_F) futures @ $0.00 dollars or +0.00 points, Gold GC ($GC_F) futures @ $0.00 dollars or +0.00 points and EuroFX 6E ($6E_F) futures @ $0.00 dollars or +0.0000 ticks. Total Profit @ $5437.50 dollars

Russell 2000 Emini TF Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ The ICE
S&P 500 Emini ES Futures: 1 tick or 0.25 = $12.50 dollars and there's more contract information @ CMEGroup
Light Crude Oil CL (WTI) Futures: 1 tick or 0.01 = $10.00 dollars and there's more contract information @ CMEGroup
Gold GC Futures: 1 tick or 0.10 = $10.00 dollars and there's more contract information @ CMEGroup
EuroFX 6E Futures: 1 tick or 0.0001 = $12.50 dollars and there's more contract information @ CMEGroup

Trade Log: All of my trades were posted real-time in the timestamp ##TheStrategyLab free chat room. You can read today's price action trading information about my trades (e.g. time, price entry, contract size, price exit) as the trade traversed to its completion. Also, sometimes I'll post real-time trading tips in ##TheStrategyLab chat room involving WRBs, WRB Hidden GAPs, Key Market Events (KME), Tutorial Chapters 2 & 3, WRB Zones, Reaction Highs/Lows, Contracting Volatility or Expanding Volatility. Its all archived @ http://www.thestrategylab.com/ftchat/forum/viewtopic.php?f=147&t=2178


Also, posted below are direct links to information about my price action trade methodology and trading plan (there's a difference between the two) that enables me to identify key trading areas in the price action that represent changes in supply/demand and volatility along with being able to exploit these changes via WRB Analysis (wide range body/bar analysis). I'm primarily a day trader because it suits my personal lifestyle but I do occasionally swing trade and position trade. Simply, my trade method is applicable for position trading, swing trading and day trading.

##TheStrategyLab Chat Room is free. Members and I use the chat room to post WRB Analysis commentary, real-time trades and to post anything else related to trading. The chat room helps me tremendously in my own trading because I use it to document (journal) general volatility analysis involving WRB Analysis so that I can easily review at a later date my thoughts as I interacted with the markets...info I can not get from my broker statements. Also, this is not a signal calling chat room where a head trader tells you when to buy or sell and I do not have the time/energy/resources to manage a signal calling chat room. Access instructions for chat room @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=164

Price Action Analysis via Advance WRB Analysis Tutorial Chapters @ http://www.thestrategylab.com/WRBAnalysisTutorials.htm and there's a free study guide of the WRB Analysis Tutorial Chapters 1, 2 and 3 @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=119&t=718

Analysis -----> Trade Signals

Trade Signal Strategies via Volatility Trading Report (VTR) @ http://www.thestrategylab.com/VolatilityTrading.htm and there's a free trade signal strategy @ http://www.thestrategylab.com/tsl/forum/viewforum.php?f=89 so that you can freely test drive one of our price action trade strategies with support (answering your questions) prior to purchasing the Volatility Trading Report (VTR). All WRB Analysis Tutorial Chapters 1 - 12 are included in the purchase of the Volatility Trading Report (VTR).

Trading Plan Daily Routine @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=271&t=2883 contains brief information about trading plan, market context, brokers, trading time frames, position size management and other discussions.

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Market Context Summaries

The below summaries by Bloomberg, Briefing, Reuters and Yahoo! Finance helps me to do a quick review of the fundamentals, FED/ECB/BOE/IMF actions or any important global economic events (e.g. Eurozone, MarketWatch.com) that had an impact on today's price action in many trading instruments I monitor during the trading day. Simply, I'm a strong believer that key market events causes key changes in supply/demand and volatility resulting in trade opportunities (swing points and strong continuation price actions) that reach profit targets. Thus, I pay attention to these key market events, intermarket analysis (e.g. Forex EurUsd, EuroFX 6E futures, Gold GC futures, Light Crude Oil (WTI) CL & Brent Oil futures, Eurex DAX futures, Euronext FTSE100 futures, Emini ES futures, Emini TF futures, Treasury ZB futures and U.S. Dollar Index futures) while using WRB Analysis from one trade to the next trade to give me the market context for price action trading before the appearance of my technical analysis trade signals. Therefore, I maintain these archives to allow me to understand what was happening on any given trading day in the past involving key market events to help better understand my trade decisions (day trading, swing trading, position trading)...something I can not get from my broker statements alone. Further, most financial websites remove (delete) their archives after a few years to make room for new content. Therefore, I maintain my own archives of the news content so that I have it available for me when financial websites no longer archives their content.


click on the above image to view today's price action of key markets


4:05 pm: [BRIEFING.COM] The stock market finished Thursday on a modestly lower note after erasing the bulk of its early loss. The S&P 500 settled lower by 0.3% while the Dow Jones Industrial Average (-0.5%) and Nasdaq Composite (-0.4%) underperformed.

The final standing represented a notable shift from the morning dynamic that saw equity indices gap down at the start amid selling in Europe. To that point, markets in France and Germany both lost near 2.0% apiece with automakers facing continued pressure. BMW was among the weakest performers in Germany, falling 5.2%, with company executives pushing back against insinuations that the company may have taken a page out of Volkswagen's playbook, saying they are ready to provide vehicles for testing on demand.

To be sure, the losses among automakers were not the culprit behind the slide in Europe, but they represented another source of pressure in market that has been wrestling with persistent growth concerns surrounding China. Those concerns were echoed by Caterpillar (CAT 65.80, -4.40) as the manufacturer of heavy machinery lowered its guidance and announced plans to reduce its workforce by 4,000 to 5,000 people by the end of next year. Shares of CAT settled lower by 6.3%, keeping the industrial sector (-0.7%) among the laggards throughout the day.

The industrial sector finished the day in negative territory, but the cyclical group put a notable dent in its opening decline, climbing off lows alongside the broader market. As for the S&P 500, the benchmark index hit its low just after 11:00 ET, which was followed by a steady march higher that accelerated during the late afternoon.

Similar to industrials, heavily-weighted financials (-0.7%) and health care (-1.1%) underperformed into the close, but their losses were outweighed by an intraday rally in energy (+0.4%), technology (unch), and consumer staples (+0.1%). In addition, the utilities sector (+0.8%) displayed relative strength throughout the day, building on its gain even as Treasuries slipped from their highs with the 10-yr yield narrowing its loss to two basis points at 2.13% after testing the 2.09% level in the morning.

Elsewhere, the energy sector turned positive with help from crude oil, which rallied 0.9% to $44.94/bbl after briefly dipping below $44.00/bbl in the morning. The energy sector narrowed this week's loss to 1.5% while WTI crude will enter the Friday session little changed for the week.

Also of note, the consumer discretionary sector (-0.3%) settled in-line with the broader market even though homebuilders displayed relative strength after KB Home (KBH 14.60, +0.15) reported a one-cent beat on better than expected revenue. KB Home settled higher by 1.1% while iShares Dow Jones US HomeConstruction ETF (ITB 27.21, +0.07) added 0.3%.

Today's participation was ahead of recent averages as more than a billion shares changed hands at the NYSE floor.

Economic data included Initial Claims, Durable Orders, and New Home Sales:

Weekly initial claims increased to 267,000 from an unrevised 264,000 while the Briefing.com consensus expected an increase to 271,000
Layoff trends remain extremely low as the four-week moving average dropped to 272,000 from 273,000, remaining at levels normally associated with full employment
Durable goods orders declined 2.0% in August after increasing a downwardly revised 1.9% (from 2.2%) in July while the Briefing.com consensus expected a decline of 2.0%
As expected, the transportation sector weighed down durable goods demand with total transportation orders declining 5.8%, paced be falling orders for motor vehicles (-1.6%) and aircraft (-3.5%)
Excluding transportation, durable goods orders were flat in August after increasing an unrevised 0.4% while the consensus expected an increase of 0.2%
New home sales increased 5.7% in August to 552,000 from an upwardly revised 522,000 (from 507,000) while the Briefing.com consensus expected a reading of 515,000
That was the most new homes sold since 593,000 homes were sold in February 2008; however, at that time, sales were trending down
Demand was strongest in the Northeast, where sales increased 24.1%. Sales in the South (7.4%) and West (5.4%) were also positive while sales in the Midwest declined 9.1%

Tomorrow, the third estimate of Q2 GDP will be released at 8:30 ET (Briefing.com consensus 3.7%) while the final reading of the Michigan Sentiment survey for September (consensus 87.0) will be reported at 10:00 ET.

Nasdaq Composite +0.1% YTD
Russell 2000 -5.4% YTD
S&P 500 -6.1% YTD
Dow Jones Industrial Average -9.0% YTD

3:35 pm: [BRIEFING.COM]

Gold and silver futures held gains today, which came after this morning's rally
By the end of today's session, Dec gold closed +2.0% at $1153.90/oz, while Dec silver ended +2.4% at $15.14/oz
Oil prices recovered off of today's low and is now near today's high along with natural gas
Nov crude oil closed the session +0.9% at $44.94/barrel, while Oct nat gas rose +0.8% to $2.59/MMBtu
Dec copper ended today flat at $2.30/lb

2:55 pm:

[BRIEFING.COM] The S&P 500 trades lower by 0.3% with one hour remaining in the session.

The benchmark index enters the final hour of today's session trading on its intraday high after climbing off its session low that was notched shortly after 11:00 ET. All ten sectors trade above their morning levels with energy (+0.8%), utilities (+0.6%), and consumer staples (+0.1%) in the green while the weakest sector-health care-has narrowed its loss to 1.0%. Meanwhile, the iShares Nasdaq Biotechnology ETF (IBB 326.51, -6.31) remains lower by 1.9%.

Interestingly, Treasuries have ticked down from highs, but they continue holding the bulk of their gains with the 10-yr yield down four basis points at 2.11%.

2:25 pm:

[BRIEFING.COM] The S&P 500 trades lower by 0.7%, which puts the index right in the middle of today's trading range.

Eight sectors continue trading in negative territory while energy (+0.4%) has joined the utilities sector (+0.2%) in the green. The energy sector has been able to erase its loss thanks to crude oil, which trades higher by 0.6% at $44.75/bbl after climbing off its low in the $43.75/bbl neighborhood. Given its current level, the energy component is on track to enter Friday unchanged for the week.

Elsewhere, the other commodity-related sector-materials (-1.0%)-remains among the laggards.

2:00 pm:

[BRIEFING.COM] The S&P 500 continues hovering near its rebound high with eight sectors trading in the red.

New home sales rose to their highest level since February 2008.

New home sales increased 5.7% in August to 552,000 from an upwardly revised 522,000 (from 507,000) in July. The Briefing.com Consensus pegged new home sales at 515,000.

The breakout in August was unexpected. Sales in 2015 had averaged a little over 500,000 homes per month through July and volatility was kept to a minimum.

The move in August could be a result of buyers being pulled into the marketplace in the anticipation that mortgage rates could increase in the near future. The National Association of Realtors reported that some of the recent gains in existing home sales came from rushed purchases. A similar response in the new home sector is very probable. If this is the case, we would expect to see a payback period develop over the next couple of months.

1:35 pm:

[BRIEFING.COM] The major U.S. indices remain under notable pressure following cautious overseas action.

A look inside the Dow Jones Industrial Average shows Caterpillar (CAT 65.75, -4.45), Boeing (BA 128.14, -3.53), and Goldman Sachs (GS 175.09, -4.32) are underperforming. Caterpillar is the worst performing company in the Dow amid a number of factors. First, early this morning Axiom Capital initiated coverage on the Industrial giant with a sell rating and a $28 price target. Shortly after that, the company announced it was lowering its FY15 guidance, commencing a restructuring initiative to lower operating costs by ~$1.5 bln, and offered a FY16 sales outlook below analyst expectations. The restructuring plan could involve a global workforce reduction of up to 10k positions and Caterpillar expects to record a $2 bln charge related to the move. Boeing and Goldman are lower amid general weakness in their respective sectors.

Conversely, Procter & Gamble (PG 70.51, +0.25) is the best performing Dow component as consumer staples as a sector escape the larger, broad market decline, only down 0.6% vs. a DJIA decline of 1.3%.

For the week, the DJIA is down 2%, and now down almost 10% in this.
Related Quotes

Elsewhere, the $29 bln 7-year Treasury note auction at the top of the hour drew a high yield of 1.813% on a bid-to-cover of 2.51.

12:55 pm:

[BRIEFING.COM] The major averages trade in negative territory at midday with the S&P 500 down 1.0% while the Dow (-1.1%) and Nasdaq Composite (-1.1%) underperform.

Equity indices slumped out of the gate after index futures retreated alongside markets in Europe during early morning action. Notably, Germany's DAX fell 1.9% with BMW diving 5.2% after Auto Bild called into question BMW's ability to pass U.S. emission standards. BMW executives have pushed back against the accusations, saying they are ready to provide vehicles for testing on demand.

In addition to the worries surrounding European automakers, continued growth concerns related to China have weighed on overall risk tolerance. Those jitters are unlikely to subside after Caterpillar (CAT 66.03, -4.17) lowered its guidance and announced plans to reduce its workforce by 4,000 to 5,000 people by the end of next year. Accordingly, shares of CAT have tumbled 5.9% while the industrial sector (-1.4%) sits near the bottom of the leaderboard, trading neck-in-neck with health care (-1.4%) and materials (-1.5%).

Notably, the heavily-weighted health care sector has faced continued pressure emanating from the biotech space. On that note, the iShares Nasdaq Biotechnology ETF (IBB 325.02, -7.80) is lower by 2.3% today and down almost 9.0% for the week.

Meanwhile, other influential sectors have not done much better with consumer discretionary (-1.1%) and financials (-1.1%) showing relative weakness. In the discretionary sector, KB Home (KBH 14.21, -0.24) has given up 1.7% despite reporting a one-cent beat on better than expected revenue.

Today's slide in equities has invited demand for Treasuries, but the 10-yr note has backed away from its high over the past hour in a move that has coincided with stocks climbing off their lows. Currently, the 10-yr yield is lower by five basis points at 2.10% after testing the 2.09% level earlier.

Economic data included Initial Claims, Durable Orders, and New Home Sales:

Weekly initial claims increased to 267,000 from an unrevised 264,000 while the Briefing.com consensus expected an increase to 271,000
Layoff trends remain extremely low as the four-week moving average dropped to 272,000 from 273,000, remaining at levels normally associated with full employment
Durable goods orders declined 2.0% in August after increasing a downwardly revised 1.9% (from 2.2%) in July while the Briefing.com consensus expected a decline of 2.0%
As expected, the transportation sector weighed down durable goods demand with total transportation orders declining 5.8%, paced be falling orders for motor vehicles (-1.6%) and aircraft (-3.5%)
Excluding transportation, durable goods orders were flat in August after increasing an unrevised 0.4% while the consensus expected an increase of 0.2%
New home sales increased 5.7% in August to 552,000 from an upwardly revised 522,000 (from 507,000) while the Briefing.com consensus expected a reading of 515,000
That was the most new homes sold since 593,000 homes were sold in February 2008; however, at that time, sales were trending down
Demand was strongest in the Northeast, where sales increased 24.1%. Sales in the South (7.4%) and West (5.4%) were also positive while sales in the Midwest declined 9.1%

12:25 pm:

[BRIEFING.COM] Equity indices have spent the past 90 minutes in a slow climb off their lows, but the S&P 500 (-1.0%) has only been able to reclaim about eight points, meaning the index remains lower by 20.

Five of ten sectors continue showing losses of more than 1.0% while the utilities sector (+0.3%) remains just above its flat line thanks to lower Treasury yields. To that point, the 10-yr note rallied as stocks slid out of the gate, and it remains near its high with the benchmark yield down five basis points at 2.10%.

On the flip side, another countercyclical sector-health care (-1.5%)-remains behind other sectors due to underperformance in biotechnology.

11:55 am:

[BRIEFING.COM] Recent action saw the S&P 500 (-1.3%) inch up off its session low, but it is worth noting that four sectors continue trading behind the benchmark index.

The health care sector (-1.9%) remains at the bottom of the leaderboard, extending this week's decline to 4.0%. Today's selling has caused the countercyclical sector to turn negative for the year, leaving consumer discretionary as the only sector that remains in the green for 2015 (+2.4%).

The recent struggles of the health care sector deserve attention considering the group had been one of the clear leaders during the market's run up to record highs. Biotechnology was at the forefront of that move and the high-beta industry group has also led the recent weakness in the market. The iShares Nasdaq Biotechnology ETF (IBB 321.50, -11.32) is lower by 3.4% today and down nearly 10.0% for the week. That being said, IBB remains higher by 5.7% since the end of 2014.

11:25 am:

[BRIEFING.COM] Not much let up to the selling pressure that has driven the S&P 500 (-1.3%) back to levels seen at the start of September. The benchmark index has marched lower since the opening bell and four of the top five sectors by weight continue trading behind the S&P 500.

Today's heavy selling has caused participants to seek some additional downside protection, evidenced by the CBOE Volatility Index (VIX 24.55, +2.42), which has spiked more than two points into the neighborhood of the 25.0% area. Furthermore, the current standing puts the near-term volatility gauge on track for its highest close since September 9 when the VIX settled at 26.23%.

10:55 am:

[BRIEFING.COM] Equity indices have slid to new lows with the S&P 500 now down 1.4% while the Nasdaq Composite (-1.6%) underperforms.

The tech-heavy Nasdaq has slipped behind the broader market due to relative weakness in the technology sector (-1.5%) while biotechnology has also shown relative weakness with the iShares Nasdaq Biotechnology ETF (IBB 325.33, -7.49) trading lower by 2.3%. For its part, the health care sector has given up 1.7%.

Broadly speaking, the five largest sectors by weight trade behind the S&P 500, suggesting the continued presence of selling pressure.

Meanwhile, Treasuries hover near their highs with the 10-yr yield down six basis points at 2.09%.

10:35 am: [BRIEFING.COM]

The dollar index trended flat overnight, but saw a moderate sell-off to negative territory, going into the morning's US unemployment and durable goods data release
Upon the release of lighter-than expected initial claims (267k vs. 271K est) and in-line readings for continuing claims and durable goods, the index saw a muted reaction and is now holding losses near its LoD at -0.7% to 95.75. It is also worth noting that an additional dollar catalyst, is a public speech being given by Janet Yellen later today.
Weakness in the dollar has somewhat buoyed WTI, which is positive on the session- despite a modest pullback from overnight gains
Yesterday's EIA report (showing a larger-than-expected build in inventories) has held the market's attention, as WTI now stands at +1.4% to $45.11/barrel
Natural gas held losses ahead of the morning's EIA inventory report- which was expected to show a large inventory build for the week ending Sep. 20
Upon release of the report, which showed a large build of 106 bcf, Natural gas extended its sell-off and is now -1.1% to $2.54/MMBtu
Precious metals rallied in early trade and are now hovering near their highs for the session, with gold +2.1% to $1154.90/oz and silver at +2.6% to $15.18/oz
Copper is trending moderately positive this morning, depite disappointing earnings and bearish commentary from equipment giant Caterpillar.
Along with disappointing earnings, CAT cited a convergence of challenging marketplace conditions- which included a reduced demand for mining equipment.
December copper is now +0.8% to $2.31/lb

10:00 am:

[BRIEFING.COM] The S&P 500 remains lower by 1.1% with nine sectors trading in the red.

New home sales in August hit an annualized rate of 552,000, which was up from the revised July rate of 522,000 (from 507,000), and better than the rate of 515,000 that had been broadly expected by the Briefing.com consensus.

9:40 am:

[BRIEFING.COM] As expected, the major averages began the trading day in negative territory. Similar to yesterday, the Dow Jones Industrial Average (-1.0%) displays relative weakness while the S&P 500 (-0.8%) trades a little ahead.

Nine of ten sectors trade in the red at this juncture while the utilities sector (+0.1%) hovers just above its flat line thanks to today's downtick in Treasury yields. To that point, the 10-yr note sits on its high with the benchmark yield down six basis points at 2.09%.

On the downside, heavily-weighted health care (-1.0%), technology (-0.9%), and financials (-0.9%) trade near the broader market while industrials (-1.5%) and materials (-1.5%) underperform. Caterpillar (CAT 65.06, -5.14) has kept the industrial sector under pressure, trading lower by 7.2% in the early going.

August New Home Sales (expected 515,000) will be announced at 10:00 ET.

9:10 am: [BRIEFING.COM] S&P futures vs fair value: -18.10. Nasdaq futures vs fair value: -40.00.

The stock market is on track for a lower start as S&P 500 futures trade 18 points below fair value after sliding from their overnight highs. That retreat has coincided with selling in Europe, where Germany's DAX is lower by 2.0% with BMW and Daimler both down near 5.0% amid concerns Volkswagen's issues may not be unique to the Wolfsburg-based automaker.

Domestically, the movements in index futures have been in focus while company-specific news has been limited. That being said, Caterpillar (CAT 66.05, -4.15) has recently dropped to a new pre-market low, trading lower by 6.0%, after lowering its guidance and announcing restructuring plans.

Furthermore, it also is worth noting that crude oil futures have dipped below the $44.00/bbl level, trading down 0.8% near $44.10/bbl at this juncture. The energy component has endured a volatile week and the early indication suggests today will be no different.

The early selling in equity futures has boosted the Treasury market where the 10-yr note sits near its high with the benchmark yield down five basis points at 2.12%.

On the economic front, the latest weekly initial jobless claims count increased to 267,000 from 264,000 while the Briefing.com consensus expected a reading of 271,000. Separately, August durable goods orders fell 2.0%, which is what the Briefing.com consensus expected.

One more data point remains with August New Home Sales (expected 515,000) set to be announced at 10:00 ET.

8:56 am: [BRIEFING.COM] S&P futures vs fair value: -15.60. Nasdaq futures vs fair value: -35.70.

The S&P 500 futures trade 16 points below fair value.

Markets in the Asia-Pacific region were mixed on Thursday, yet Japan's Nikkei (-2.8%) was a notable standout for its weakness, which followed a three-day holiday closure. The downturn was labeled a catch-up trade that mirrored the general weakness that has been seen in other regional markets this week, except China, which is outperforming as President Xi Jinping visits the U.S.

In economic data:
Japan's September Manufacturing PMI 50.9 (expected 51.3; prior 51.7) and All Industries Activity Index +0.2% month-over-month (expected +0.1%; prior +0.5%)
Hong Kong's August Trade Balance -HKD25.10 bln (expected -HKD23.30 bln; prior -HKD28.40 bln) as Exports -6.1% year-over-year (expected -2.1%; prior -1.6%) and Imports -7.4% year-over-year (expected -4.2%; prior -5.2%)
New Zealand's August Trade Balance -NZD1,035 mln month-over-month (expected -NZD850 mln; prior -NZD649 mln); -NZD3,331 mln year-over-year (expected -NZD3 mln; prior -NZD 3 mln)

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Japan's Nikkei declined 2.8% in its first trading session since last Friday, ending at its lows for the day. The weakness was described a catch-up trade related to the fallout from the Volkswagen scandal and ongoing growth concerns fueled by China's weak manufacturing PMI reading on Wednesday. In the same vein, Japan's manufacturing PMI for September dropped for the first time in three months and added to Thursday's selling pressure. Losses were paced by the industrials (-4.3%), technology (-3.2%), and materials (-3.2%) sectors. The biggest laggards were JTEKT Corp (-10.4%), NSK Ltd (-9.2%), and OKUMA Corp (-9.1%). Shiseido Co (+3.4%), Aeon Co (+2.8%), and Seven & I Holdings (+2.5%) led a small group of winners. Out of the 225 index members, 14 ended higher and 211 finished lower.
Hong Kong's Hang Seng declined 1.0% and finished near its lows for the session. The weakness followed on the heels of Wall Street's weak showing and was a continuation of the weakness seen throughout the weak. The Hang Seng is down 3.8% since Friday's close. Leading Thursday's losses were Galaxy Entertainment Group (-3.5%), Swire Pacific (-2.8%), and AIA Group (-2.6%). China Mengniu Dairy (+2.5%), China Resources Enterprise (+2.2%), and Power Assets Holdings (+1.9%) topped a small list of winners. Out of the 50 index members, 11 ended higher and 39 finished lower.
China's Shanghai Composite jumped 0.9%, bolstered by a burst of buying interest in the final hour that took the Composite up 0.7%. The late spike will drive speculation that it was government-sponsored, particularly with President Xi Jinping in the U.S. right now speaking favorably of China's reform efforts.

Major European indices trade lower across the board with Germany's DAX (-2.0%) pacing the retreat amid concerns Volkswagen's issues may not be unique to the automaker. On a separate note, the Norges Bank has unexpectedly lowered its deposit rate by 25 basis points to 0.75%.

Participants received several data points:
Germany's September Ifo Business Climate Index 108.5 (expected 108.0; prior 108.4). Business Expectations 103.3 (expected 101.5; prior 102.2) and Current Assessment 114.0 (consensus 114.7; last 114.8). Also of note, GfK Consumer Climate 9.6 (expected 9.8; last 9.9)
Italy's July Retail Sales +0.4% month-over-month (expected 0.2%: prior -0.4%) while Industrial Sales -1.1% month-over-month (consensus 1.6%; last 0.7%) and Industrial New Orders +0.6% month-over-month (expected 0.4%; previous 3.0%)
UK's BBA Mortgage Approvals 46,700 (expected 46,300; prior 46,300)
France's September Business Survey 104 (expected 102; previous 103)

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Germany's DAX has given up 2.0% with 29 of its 30 components trading in the red. Volkswagen is higher by 1.8% while BMW and Daimler hold respective losses of 6.7% and 4.7%. As for financials, Commerzbank and Deutsche Bank are both down near 1.4%.
In France, the CAC is lower by 1.8% amid broad pressure. Peugeot is the weakest performer, trading lower by 4.7%, while growth-sensitive Technip and Solvay are both down near 3.5%. Elsewhere, Unibail Rodamco trades up 0.5% while Societe Generale sits just below its flat line.
UK's FTSE is lower by 0.6% with miners and energy names showing relative weakness. Anglo American, Glencore, and Royal Dutch Shell hold losses between 1.7% and 7.7%. On the upside, Associated British Foods and Whitbread are both up near 1.2%.

8:33 am: [BRIEFING.COM] S&P futures vs fair value: -19.10. Nasdaq futures vs fair value: -47.10.

The S&P 500 futures trade 19 points below fair value.

The latest weekly initial jobless claims count totaled 267,000 while the Briefing.com consensus expected a reading of 271,000. Today's tally was above the unrevised prior week count of 264,000. As for continuing claims, they fell to 2.242 million from 2.243 million.

August durable goods orders fell 2.0%, which is what the Briefing.com consensus expected. This comes after the prior month's revised reading reflected an increase of 1.9% (from 2.2%). Excluding transportation, durable orders were unchanged (consensus 0.2%) to follow the prior month's unrevised increase of 0.4%.

8:00 am: [BRIEFING.COM] S&P futures vs fair value: -16.10. Nasdaq futures vs fair value: -41.00.

U.S. equity futures trade near their pre-market lows after sliding from their overnight highs alongside equity indices in Europe. The S&P 500 futures currently trade 16 points below fair value.

The recent slide in equity futures has coincided with demand for Treasuries that has sent the 10-yr yield lower by four basis points to 2.11%.

On the economic front, weekly Initial Claims (Briefing.com consensus 271K) and August Durable Orders (expected -2.0%) will be reported at 8:30 ET while August New Home Sales (expected 515,000) will be announced at 10:00 ET.

In U.S. corporate news of note:

Accenture (ACN 97.86, 0.00): beat estimates but guided Q1 revenue below consensus. Also of note, the company raised its dividend 8.0% to $1.10/share and approved $5 billion to conduct additional share buybacks. Industrial names have faced more selling pressure this morning, suggesting the presence of continued concerns about China's economic growth.
Caterpillar (CAT 68.25, -1.95) and Joy Global (JOY 15.40, -0.35) are currently lower by 2.8% and 2.2%, respectively.

Reviewing overnight developments:

Asian markets ended mixed. China's Shanghai Composite +0.9%, Hong Kong's Hang Seng -1.0%, and Japan's Nikkei -2.8%
In economic data:
Japan's September Manufacturing PMI 50.9 (expected 51.3; prior 51.7) and All Industries Activity Index +0.2% month-over-month (expected +0.1%; prior +0.5%)
Hong Kong's August Trade Balance -HKD25.10 bln (expected -HKD23.30 bln; prior -HKD28.40 bln) as Exports -6.1% year-over-year (expected -2.1%; prior -1.6%) and Imports -7.4% year-over-year (expected -4.2%; prior -5.2%)
New Zealand's August Trade Balance -NZD1,035 mln month-over-month (expected -NZD850 mln; prior -NZD649 mln); -NZD3,331 mln year-over-year (expected -NZD3 mln; prior -NZD 3 mln)
In news:
Bank of China economists have lowered their Q3 GDP estimate to 6.8%, expecting a rebound to 7.0% in Q4, according to press reports
The Taiwan central bank unexpectedly cut its key interest rate to 1.75% from 1.875%, representing the first cut since 2011

Major European indices trade lower across the board. Germany's DAX -1.7%, France's CAC -1.4%, and UK's FTSE -0.6%. Elsewhere, Italy's MIB -1.1% and Spain's IBEX -1.3%
Participants received several data points:
Germany's September Ifo Business Climate Index 108.5 (expected 108.0; prior 108.4). Business Expectations 103.3 (expected 101.5; prior 102.2) and Current Assessment 114.0 (consensus 114.7; last 114.8). Also of note, GfK Consumer Climate 9.6 (expected 9.8; last 9.9)
Italy's July Retail Sales +0.4% month-over-month (expected 0.2%: prior -0.4%) while Industrial Sales -1.1% month-over-month (consensus 1.6%; last 0.7%) and Industrial New Orders +0.6% month-over-month (expected 0.4%; previous 3.0%)
UK's BBA Mortgage Approvals 46,700 (expected 46,300; prior 46,300)
France's September Business Survey 104 (expected 102; previous 103)
Among news of note:
The Norges Bank has unexpectedly lowered its deposit rate by 25 basis points to 0.75%

5:52 am: [BRIEFING.COM] S&P futures vs fair value: -4.00. Nasdaq futures vs fair value: -8.50.

5:52 am: [BRIEFING.COM] Nikkei...17571.83...-498.40...-2.80%. Hang Seng...21095.98...-206.90...-1.00%.

5:52 am: [BRIEFING.COM] FTSE...6017.77...-14.50...-0.20%. DAX...9533.45...-79.20...-0.80%.

Special thanks to Bloomberg, Briefing, Reuters and Yahoo! Finance for their market summaries.

Best Regards,
M.A. Perry
Trader and Founder of WRB Analysis (wide range body/bar analysis)
@ http://twitter.com/wrbtrader @ http://stocktwits.com/wrbtrader

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