The bulls need a close at 2100 or better for starters
Dow +2.47 at 17789.67, Nasdaq +4.20 at 4952.25, S&P+2.37 at 2099.33
Today started on a lower note as equity futures responded to a negative bias in international markets. Overnight, Japan’s Nikkei (-1.6%) led the retreat after Prime Minister Shinzo Abe announced that he would delay the next sales tax hike until 2019. Abe also stated that he would unveil a new fiscal stimulus package in the fall. Meanwhile, tepid readings from China’s May Manufacturing PMI and German Manufacturing PMI for May was softer than expected.
The market climbed off their opening lows as a stronger reading of the ISM Service Index was reported for May.
Right now the market has been churning for the last several days and there just isn’t a lot going on. There are a few things to watch though. OPEC members are floating yet another rumor of a ceiling on production. I believe we will know something tomorrow on this. Iran has already told OPEC to pound salt, (again), and a vote has to be unanimous so I don’t see anything getting done.
We will also see the May jobs report Friday and don’t forget the Brexit vote is getting closer.
The Russell managed a little breakout today which is a decent sign for the bulls as this is a risk on area.
There’s an old saying, “no trend, no trade”, and right now, although the market is in the hands of the bulls, it has been trendless of late, so setups can be a little harder to come by. As a result my foot is off the pedal to a degree.
It seems that since we have seen the fed minutes, the market is looking a little past June for an interest rate hike. This has kept a bid under the energy space and has also prevented the miners from total collapse. At least for now. The dollar is hanging in there, but has stopped rising everyday so that helps these two sectors as well. Thinking on rates can change very fast, so nothing is a given.
See you in the morning.