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S&P tests all-time highs, pulls back, while Europe outperforms, up 1%

https://stme.in/ieZ6Sl4o7

Technical Analysis 5- min Video of overnight developments & current structure

Will be on CNBC Today, Wed, 12/7 at 3:30-3:40 pm-    US equity futures showing fractionally negative performance this am while most of Europe is higher by 1%, following through on yesterday's minor 3 mth trend breakout which suggests a test of September highs, as Europe shows better relative strength in the near-term- the US Dollar index is largely unchanged, while Treasuries have turned higher- A few key themes in the last couple days that are worth mentioning:  1) Europe's Banks performance has caused their equity markets to begin to show some near-term outperformance vs US after nearly 4 months of range-bound trading-  2) European yields have begun to show some weakness just in the last couple days, led by Spanish and Italian yields  (which thus far hasn't hurt the Financials) 3) US Financials along with Energy have been nearly the sole sources of strength of late, with 7 sectors DOWN in the last 5 days despite S&P having pushed higher to test all-time highs this am in Futures 4) Russell 2k outperformance continuing to scale new heights, yet Technology as a sector has NOT yet shown evidence of turning higher properly in a way that would suggest good relative strength into year-end 5) Materials stocks have pushed up to the highest levels since mid-2015 as Steel, Coal continue their rally while we've seen a stabilization in Precious metals stocks- Commodities as an asset class have also rebounded in the last week and still seem apt to do so as the Dollar consolidates recent gains-    Overall a tough market as many stocks right now aren't keeping up with the S&P and only 60% of SPX above their 10 day ma which would seem low given it was 80 a couple months ago along with back in July -  Breadth remains a concern on this rally given the selectivity and lack of broadbased strength of late so important that this rally in FINANCIALS does not turn down too much on any pullback in US yields that follows that going on in Europe-   For today 2214 will continue to be important resistance for S&P futures while 2202-3 important on the downside as support-  early gainers in ANTH, PLAY, SQ, WDC, TXMD, MU, CHK, WEN, while on the downside- BBG, ESV, LADR, PES- Look to buy into weakness today if given the chance but selectivity is key until more evidence of a broad-based rally starts to surface

 

S&P tested all-time highs earlier in overnight trading before backing off-  Will be important to get OVER 2214.  For now, area to buy dips lies at 2202-3