Please enable javascript in your browser to view this site!

Does a Stallout Have to Lead Down? No Weakness thus far

Still very little signs of weakness, and while many have come out of the woodwork in the last few days to attempt to "top-tick" this rally, we haven't seen sufficient deterioration to warn of any pullback.  Globally, yields have begun to stabilize and turn higher, and the rallies in US, European, and Asian indices seem to be ongoing, with just minor stallouts in recent days, though nothing too damaging.  The various "talking Head Fed Governors all seem to be contradicting the Dovish message sent at the recent Fed meeting, and many including Harker, Williams, and Lockhart, have all spoken out in favor of possible hikes in April, with investors listening closely to what Bullard has to say today.  Nonetheless, this inconsistency certainly helps to create an aura of indecision surrounding the FOMC, and helps the "Wall of Worry" to persist.   The rally in the US Dollar meanwhile has helped commodities to settle a bit in recent days, which should present a buying opportunity for the Metals, and Metals stocks after a bit of consolidation.  WTI Crude meanwhile, has shown little to any signs of reversing course, similar to the SPX, but should be watched carefully given the correlation along with the recent bearish Inventory stats.  Bottom line, heading into the final 12 hours of trading in this holiday shortened week, there's very little that suggests the indices "shouldn't" end the week on a high note, based on ongoing resiliency.  2 key areas between now and late Tomorrow-  2037..  and then 2027-8.  Until we see CLOSES UNDER 2027..  trends remain positive and could see a further push higher up to near 2055, 2060-2..  so technically it remains right to bet on higher prices unless proven otherwise.

2027-8 now key for S&P futures-  For now, no signs of any trend damage

2027-8 now key for S&P futures-  For now, no signs of any trend damage