US stock futures rose as bond yields declined and after Tesla published strong quarterly results. Futures linked to the Dow Jones rose by 25 points while those tied to the S&P 500 added 10 points. Meanwhile, US 10-year bond yield declined to 1.25% while the 30-year yield declined to 1.90%. At its peak this year, the 10-year rose to 1.776%. Therefore, this decline is a sign that investors are pricing in a lower inflation rate and a relatively dovish Federal Reserve in the near term. The Fed will start its meeting today and deliver its decision tomorrow. US stocks are also tilting higher after Tesla published strong quarterly results as it overcame higher costs and supply shortages. The company made close to $12 billion in revenue in the second quarter, higher than the median estimate of $11.2 billion. The firm’s gross margin increased to 28.4%, which was substantially higher than in the first quarter. As a result, Tesla’s operating profit rose to more than $1.3 billion while net income rose to $1.4 billion. The earning season will continue this week, with companies like Ecolab, Archer-Daniels-Midland, Waste Management, Raytheon, Pulte Group, Microsoft, Amazon, and AMD set to publish. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

In daily time frame NASDAQ has completed its 5 wave structure and has to go for a bearish correction before going any higher. The stock had performed well always based on the American stocks futures fundamental events and from current markets pyschology . the scenarios are indicating a fall to techgiants index. Relative strength index is trading near 70 in daily while just stepping out by an inch from the oversold conditions and is ready for a bearish correction of its MACD as well. Momentum can be seen getting weak gradually on MACD and will pull NASDAQ to our targeted destination at 14915 to complete its correction. H4 depicts the same story with its completion of 5 wave bullish structure and is gathering some ground to make dovish correction before targeting any higher highs.  

NASDAQ D1

Jul 27 2021