S&P 500 reversed lower before the closing bell, but the low volume took away from the move‘s credibility. Only the bond market was more pessimistic in its close, however the USD reverxing premarket gains into solid red, continues hinting at more upside in stocks – no matter the manufacturing and PPI data today (retail sales tomorrow would be more conducive than these two).
For today, tech is likely to do better than value, which attracted rising selling pressure yesterday. The retreat in yields is likely to cushion primarily the beleaguered tech and communications, taking the daily spotlight from real assets. I am not looking for a sizable bullish move today in precious metals or oil – stocks will provide more opportunities.
4,010s are likely to provide resistance while 3,973 remains the support that‘s increasingly less likely to be jeopardized today. 4,040s are more probable - I‘m looking for risk-on to win after the open, which would would help real assets intraday too, but would be followed by some selling before close again.
Keep enjoying the lively Twitter feed serving you all already in, which comes on top of getting the key daily analytics right into your mailbox. Plenty gets addressed there, but the analyses (whether short or long format, depending on market action) over email are the bedrock, so make sure you‘re signed up for the free newsletter and that you have Twitter notifications turned on so as not to miss any tweets or replies intraday.
