OIL PRODUCTS: Oil Products Summary At European Close: Cracks Rise

• EUR/USD: Jul09 $1.1700(E1.7bln); Jul10 $1.1650(E2.1bln), $1.1800(E1.3bln); Jul11 $1.1770(E2.0bln)
• USD/JPY: Jul09 Y144.00-10($1.4bln); Jul10 Y143.95-15($1.0bln), Y144.70-90($1.3bln)

• RES 4: 113-07   76.4% retracement of the Apr 7 - 11 bear leg 
• RES 3: 112-23   High May 1 and key resistance
• RES 2: 112-12+/15 High Jul 1 / 61.8% of the Apr 7 - 11 sell-off
• RES 1: 111-28   High Jul 3  
• PRICE:‌‌ 110-31+ @ 16:08 BST Jul 07
• SUP 1: 110-31   50-day EMA        
• SUP 2: 110-16   Low Jun 20
• SUP 3: 110-10+ Low Jun 16 
• SUP 4: 110-03 76.4% of the May 22 - Jul 1 bull leg 

A bull cycle in Treasury futures is intact and - for now - the latest pullback appears corrective. The contract remains above a key support at 110-31, the 50-day EMA, and the Jul 3 low. A clear break of this average would signal scope for a deeper correction and highlight a possible reversal. For bulls, a resumption of gains would open 112-15, the 61.8% retracement of the Apr 7 - 11 steep sell-off. Initial resistance is at 111-28, the Jul 3 high.

• Stocks are drifting in moderately weaker territory as markets return from the extended 4th of July holiday weekend, major averages extending lows by midmorning Monday. Details on trade negotiations remain fuzzy while US trade officials kicked the can on this Wednesday's deal deadline to August 1 to give countries more time to discuss/comply.
• Pres Trump warned any country in the BRICS bloc (10 countries: Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates) that align with "ant-American policies" will face an additional 10% tariff.
• Currently, the DJIA trades down 279.4 points (-0.62%) at 44544.65, S&P E-Minis down 35.5 points (-0.56%) at 6288.75, Nasdaq down 142.8 points (-0.7%) at 20457.99.
• Consumer Discretionary and Information Technology sectors underperformed in the first half, laggers included Tesla -7.06% (after Musk announced a new political party, the American Party, not to mention a couple downgrades), Lululemon Athletica -3.36%, Chipotle Mexican Grill -2.82%, CarMax -1.98% and Mohawk Industries -1.88%.
• Semiconductor and hardware makers weighed on the IT sector in the first half: Super Micro Computer -3.04%, First Solar -2.96%, Advanced Micro Devices -2.31%, Micron Technology -2.07% and QUALCOMM -2.07%
• Meanwhile, Utilities and Industrials sectors outperformed, NRG Energy +1.08%, Public Service Enterprise +1.01%, Alliant Energy +0.54%, CenterPoint Energy and Atmos Energy both +0.35% buoyed the Utility sector, while leading gainers in the Industrials sector were led by: Uber Technologies +3.35%, GE Vernova +1.91%, Huntington Ingalls Industries +1.43%, Lockheed Martin +1.40%, Jacobs Solutions and Northrop Grumman both +0.82%.