US: FED Reverse Repo Operation

Stocks weaker, near recent midday lows w/ SPX emini futures ESM2 -45.5 (-1.09%) at 4113.75. Already trading mildly weaker through the first half, major indexes extended lows as SEC Chairman Gary Gensler discussed possible new market regulation at a Piper Sandler conference, seeking to "assure full competition, best prices for retail investors" WSJ reported.

• Other headline news included profit warnings for Credit Suisse overnight that may trigger more lay-offs (this a day after execs looked to expand managing directors at the bank by appr 40. Unverified market chatter over potential purchase of CS by State Street.
• Meanwhile, Twitter bounce after headline will comply with Elon Musk request for more acct spam data.
• Technicals: current consolidation appears to be a bull flag, reinforcing short-term bullish conditions. Attention on 50-day EMA at 4178.15 today where clear break would strengthen a bullish outlook and open 4303.50, the Apr 26/28 high. Gains are still considered corrective and the primary trend direction is down. First support to watch is 3960.50, May 26 low.
• SPX leading/lagging sectors: Energy sector continues to gain (+15%) underpinned by surge in crude (WTI +3.20 at 122.61). Laggers: Real Estate (-2.05%) and Materials (-2.02%).
• DJIA -320.72 (-0.97%) at 32861.68; Nasdaq -101.4 (-0.8%) at 12073.37.
• Dow Industrials Leaders/Laggers: Caterpillar (CAT) +4.72 at 231.82, Chevron bid (CVX) +2.06 at 182.26. Laggers: United Health Care (UNH) -6.9 at 490.20, Goldman Sachs (GS) -6.41 at 315.10, Home Depot (HD) -3.12 at 298.65

• RES 4: 1.2772 High Apr 26
• RES 3: 1.2686 50-day EMA
• RES 2: 1.2667 High May 27 and key short-term resistance
• RES 1: 1.2590 High Jun 3
• PRICE: 1.2566 @ 15:47 BST Jun 8
• SUP 1: 1.2431 Low Jun 7
• SUP 2: 1.2317 Low May 17
• SUP 3: 1.2277 76.4% retracement of the May 13 - 27 upleg
• SUP 4: 1.2156 Low May 13 and the bear trigger

GBPUSD found support at 1.2431 Tuesday and this level marks a key short-term support. Attention is still on a key resistance at the 50-day EMA that intersects at 1.2686. A clear break of this average is required to strengthen short-term bullish conditions. The primary trend direction is down though and the trigger for a resumption of this trend is 1.2156, May 13 low. A deeper pullback would initially expose 1.2317, the May 17 low.

White House Press Secretary Karine Jean-Pierre and National Security Advisor Jake Sullivan are shortly due to deliver a press gaggle aboard Air Force One en route to the Summit of the Americas in Los Angeles.

• Livestream of the presser here: https://www.youtube.com/watch?v=IUroEJTtzbs