US INDICES:
On Thursday, both the S&P 500 and Nasdaq futures experienced declines. Netflix Inc. faced its most significant intraday drop since December due to missed sales estimates and a third-quarter revenue projection that fell short of Wall Street's expectations. Similarly, Tesla Inc. also saw a decrease in profitability during the second quarter, indicating a squeeze on the electric-vehicle maker's margins.
The remarkable rally in the tech-heavy Nasdaq, which surged 45% this year, surpassing the S&P 500's 19% increase, seems to have hit a pause. This rally was fueled by enthusiasm over the potential for artificial intelligence.
IBM (IBM.N), a provider of enterprise software, experienced a 0.6% slip after its second-quarter revenue failed to meet Wall Street's expectations. The decline was mainly driven by reduced sales of its mainframe computers as businesses cut back on tech spending.
The U.S.-listed shares of Taiwanese chipmaker TSMC also dropped by -2.2% after warning of a projected 10% sales decrease in 2023.
According to Refinitiv data from Wednesday, overall earnings across various industries are expected to decline by 8.2% for the second quarter.
There are concerns about a potential U.S. recession this year, primarily due to central banks tightening policy and constricting economies until inflation returns to their 2% targets.
The Nasdaq is rebounding from the target of 15,800 and consistently testing the upper boundary of the current bullish channel on a daily basis. The price action of the Nasdaq on the 4-hour chart suggests a potential correction towards the support level at 15,250.
USOIL:
The price of crude oil remained stable despite the impact of a stronger US dollar and a bullish inventory report indicating robust demand. The US dollar's recovery dampened investor sentiment, which was triggered by a bond rally resulting from lower-than-expected UK inflation.
On the other hand, the US Energy Information Administration reported a decline of 708,000 barrels in US crude stockpiles compared to the previous week. Notably, at the pricing point for WTI in Cushing, inventories fell by 2.9 million barrels, the largest drop since October 2021, as reported by the EIA. Additionally, the implied demand for all oil products also increased during the reported week.
Furthermore, there are noticeable signs of supply cuts from the Organization of the Petroleum Exporting Countries (OPEC), with Russia's crude shipments dropping to a six-month low in the four weeks leading up to July 16.
WTI crude oil is currently holding near the lower boundary of the existing bullish channel. Breaking through the 77-resistance level remains a challenge for WTI as it aims for the next target of 79. Moreover, on a weekly basis, the 200MA is acting as a resistance at the 77 mark.
Crypto:
The U.K. government has rejected a proposal from the U.K. Treasury Committee to regulate crypto retail trading similar to gambling. It firmly disagrees with the Committee's stance.
During the second quarter of 2023, the Grayscale Bitcoin Trust (GBTC) proved to be one of the best performers at Cathie Wood's ARK Invest.
According to ARK's latest quarterly ETF Report, released on July 19, GBTC significantly contributed to the success of the ARK Next Generation Internet exchange-traded fund (ARKW) in Q2.
NYDIG, a prominent crypto trading firm, released a research report suggesting that the introduction of Bitcoin spot-based exchange-traded funds (ETFs) could potentially create $30 billion in new demand for Bitcoin, the world's largest digital asset. CoinDesk reported this information today.
BTC news, analysis, and On-Chain analysis all indicate a forming bullish run.
Technically , Bitcoin (BTC) is experiencing a range-bound price action formation, with the resistance level at 31,800 and the support level at 29,900. Traders are paying close attention to the weekly chart, specifically watching for a potential breakout above the 100-day moving average (100MA). A successful breakout above this level has the potential to drive the price towards the initial resistance at 36,000.