Ready to spring
|S&P 500 refused the intraday decline – value held up very finely. 2-year yield is on guard, but stocks are refusing to budge. Not even the sharp daily dollar upswing had much of an effect – what it did to real assets, is being (gradually) reversed, and in the case of oil, the unsubstantiated rumor was swiftly dealt with already yesterday. So much for oil supply, after $80, there comes $82.50. The same move is going to be be mirrored in silver and copper, confirmed then by gold and miners.
Today‘s key level to overcome and not see jeopardized, is 3,965 – the logical clues serving so well in determining the Nov CPI buying spree, are in place once again, favoring a bullish resolution beyond the sensitivity shown to rising dollar yesterday and declining dollar today. Stocks look willing to run (4,010s getting in sights)and this would be the ideal confirmation. Fundamentally for the 24+ hours ahead, odds are high that the Fed and manufacturing PPI would resolve in the hours ahead to the upside as well.
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Let‘s move right into the charts.
S&P 500 and Nasdaq outlook
Nasdaq is nicely primed to take the cue, and help S&P 500 higher in the coming microrotation caused by further retreat in long-term yields. I still say that 4,000 are on the chopping block this week.
Credit markets
Daily pause in bonds that doesn‘t look like getting resolved to the upside and dragging risk assets along. Contracting volume equals a bigger move is readied, and odds are it would lead higher.
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