All Eyes on Fed Update

U.S. markets were weak for a 2nd-straight session as Wall Street awaits testimony from Fed Chairman’s Jerome Powell’s congressional testimony midweek. The start of 2Q earnings season also had investors slightly nervous as estimates have been coming down in recent weeks with a major conglomerate company reporting numbers Tuesday morning.

The Dow fell 0.4% following the intraday pullback to 26,744. Near-term and upper support at 26,750-26,500 held with a close below the latter likely getting 26,250-26,000 and the 50-day moving average in play.

The S&P 500 was down 0.5% after testing a low of 2,770 during the 2nd half of action. Near-term and upper support at 2,975-2,950 was breached but held by a point with a close below the latter being a bearish development with risk toward 2,925-2,900 and the 50-day moving average.

The Nasdaq declined 0.8% after tapping an intraday low of 8,078. Current and upper support at 8,100-8,050 was breached and failed to hold by a couple of points with a close below the 8,000 level signaling additional weakness.

The Russell 2000 dropped 0.9% following the intraday back-test to 1,559. Upper support at 1,560-1,545 held by just over a point with a close below the later and the 50-day moving average being a bearish development.

Real Estate led sector strength after gaining 0.4% while Utilities added 0.2%.

Materials and Communication Services led sector weakness after falling 1.2% and 0.9%, respectively.

I hope this helps you prepare for the trading day. Make it a great one!