Stocks were trading flat here in the US and Europe and were mixed in Asia. It is actually the first Monday in some time I can think of that we are not having a big move higher at the open. 

The big news overnight seemed to be the continued selling pressure witnessed in Tencent, with 700HK falling by another 4.8% to close at 502 HKD. It pushed the stock below support at 512 HKD, and if the stock can’t bounce back above that support tonight, it may be a sign of more trouble to come, with the next significant level of support around 435 HKD. 

S&P 500 (SPY)

The S&P 500 futures are trading up by around 15 bps this morning around 3,350. The big question is what happens next, do we continue to plow higher, or is there a reversal coming. I guess we will just have to wait and see. I still tend to think we see that pullback. 

One clue may come from the dollar and whether it can continue to rebound. As of right now, it is up another 30 bps and targeting a further increase to around 94. 

Amazon (AMZN)

Again, we will continue to watch big technology names, as these are the stocks that are likely to drive the direction of the market more than another group. Amazon, of course, continues to be the big stock in the group after its huge move up this year. So far, Amazon has avoided the same fate as Tencent, but only time will tell if that divergence can continue to last. 

Microsoft (MSFT)

The same seems to hold for Microsoft as it continues to struggle to break out at resistance at $216.50. 

JD.com (JD)

Meanwhile, JD.com is very close to breaking a significant uptrend in its shares. You could argue that it already broke that uptrend, but it is so close, and tight we will say if the stock moves lower today, it has broken with the next stop around $58. 

FedEx(FDX)

FedEx is at a big level of resistance at $185. If the stock fails to advance ti could pullback to $165. Otherwise, $201 is the next level higher.

Good Luck today.