Stocks Lack Momentum As Traders Take Some Profits After Rally

Traders Wait For Additional Catalysts

S&P 500 futures are swinging between gains and losses in premarket trading as traders take some profits after the recent rally.

It’s a busy day on the earnings front, so the reaction to the companies’ reports will likely determine the direction of today’s trading. Tesla will release its quarterly results today after the market close, so the stock will likely be active today as traders position themselves ahead of the earnings report.

The yield of 10-year Treasuries has recently made an attempt to settle above 1.67% but lost momentum and pulled back towards the 1.62% level, which is a positive development for stocks. Meanwhile, the U.S. dollar is flat against a broad basket of currencies as foreign exchange market traders evaluate their next moves after the recent pullback.

WTI Oil Declines As China Tries To Cool Down Coal Prices

WTI oil declined below the $82 level and is trying to settle below $81.50 after China decided to put pressure on prices in the domestic coal market. The oil market has recently became sensitive to the developments in natural gas and coal markets as high prices for gas and coal forced some consumers to switch to oil.

WTI oil made several attempts to get above the $84 level in recent trading sessions but failed to develop sufficient upside momentum, and it looks that the market is ready for a pullback as traders need to take some profits off the table after the rally. Most likely, oil-related stocks will find themselves under material pressure at the beginning of today’s trading session.

Silver Moves Above The $24 Level As Rally Continues

Yesterday, silver gained strong upside momentum and made an attempt to settle above the $24 level. Today, this rally continues, and silver is trying to get above yesterday’s highs near $24.15.

Gold/silver ratio continues to move lower, which is bullish for silver. Meanwhile, gold managed to settle above the resistance at $1775 and is moving towards the next resistance at $1800, so gold mining stocks and silver mining stocks should enjoy solid support during today’s trading session.

For a look at all of today’s economic events, check out our economic calendar.