Jul 29 MMC (Morning Market Commentary)

Jul 29 Market Commentary

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Overnight markets are mixed with Asia 3/6 red and EU 3/4 green while SPY is UNCH (unchanged) in pre-market action. The KOSPI had another red close, losing 5.98% and closing < 6K for the first time since April this year. For an index that was up +122% on the year, it is now only up +34%. The next major support is 5K and losing that would likely trip a bunch of stops (remaining ones at least).

Iran had fired some missiles into Jordan yesterday, and has rejected a 50/50 joint control over the strait with Oman. USO has since bounced from the 118 lows to 128, which is +8% so the threat of more conflict seems to be back on the menu.

Today is a huge macro day with MSFT/META reporting earnings after market and the FOMC on deck today. We expect little movement pre-FOMC (unless there are updates to the Iran/US conflict) and then post FOMC some strong directional flows with updated forward guidance.