gm- Eco data- personal income 0.4%.. In line with expectations- Spending higher- 1% vs 0.7%- PCE Deflator 0.2% in line with expectations..MoM and 1.1% YoY- No change with either Equities or TY yields on this data- Overall, stocks bullish, but overdone and combination of former April highs, along with intra-day overbought conditions and a few cycles hitting this week suggest this week could be important in causing resistance to this rise and minor pullback- However, we'll need to see evidence of at least some technical damage to have suspicion of a bigger pullback- and S&P could give back 1/3 of recent rally from 5/19 and get down to near 2072 with little or no technical damage and this would set up for a move to new highs. Yesterday's electronic session came within 1 point of May 2015 closing highs in FUTURES_SPX cash still about 30 points shy- but 2105 important for Futures then 2116, and 2090 support.. 2083. Big move yesterday in USDJPY and also German bund yields. And TNX this am up to 1.88 and close to trying to breakout. So this will be important- but positive movement in Dollar/Yen and TNX ordinarily bullish for US Stocks- For now, CPXX, CLF, ICPT, SODA, MU, WR, DANG all higher- while on downside- CCE, OSIR, GXP, PSTI- Weekly Technical perspective this morning mentions 10 attractive stocks in the 10 major S&P sectors right now.. Let me know if you have questions
Area near 2105 important, then 2116 for S&P futures. Prices got to within 1 tick of May 2015 highs in futures while still 30 points underneath in SPX cash- Prices could easily stall out this week and pullback 1/3 of rally while setting up for an attractive buying opportunity for a move back to new highs
Bullish move in China, despite minor CSI300 Flash-crash, which looks to have been immediately recouped. Shanghai comp and HSCEI both had sharp advances and more meaningful than what had been seen in recent weeks, which suggests at least a bit more strength
10yr yields remain subdued and at levels similar to what we saw back in February. So despite the 2yr yield ramping up, the curve has flattened for now and would need to see a move back over 1.90 to see Yields trend up to 2% or slightly higher into July before a turn.
Movement back over 110.60 yesterday was constructive for USDJPY and this followthrough today argues for bullish movement in stocks while TNX also is rising. for now, a move to 112 likely into 1-2 days, and then could stall, but a good rebound above downtrends from both late March and from early February, just at a time when Yen Spec longs were hitting multi=month highs
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