The VIX was down -8.34%

Highlights:

Market Recap: The S&P 500 finished the day up 0.85% yesterday.  The US 10 year yield finished up 2 basis points. The Dollar was up 0.14%.  Gold was down on the day, closing down -0.32%. The VIX was down -8.34%.

Economic update: Existing home sales dropped -0.38% last month, underperforming expectations.

Factors: The low volatility factor is up almost 18% and is the strongest over the last year. Small caps, high beta, and value are all laggards.

Quality: Quality looks like it is forming a short term top and is near support.  Quality is still in a positive trend relative to the S&P 500.

Momentum:  Momentum is still in a negative trend relative to the broad market, but recently it has shown strength.  Can momentum break out to a positive trend?

Futures Summary: 

News from Bloomberg:

The U.S. may ban up to five Chinese surveillance companies, reaching past Huawei to include world leaders in video equipment, people familiar said. That move would escalate tension and underline the U.S.'s harrying of China's corporate champions.

Beijing is prepared for the struggle. Xi Jinping urged citizens to join a new Long March, a phrase he's used before to mean progress in the face of hardship. Monday's remarks, in a video clip released by state TV, may be read as a clarion call to prepare the Chinese for a prolonged trade war.

The Fed may have "slightly overdone it" with December's rate hike, St. Louis regional chief James Bullard said. A cut is an option if inflation keeps undershooting. His own outlook sees more misses. On the trade war, he said the threat of China selling Treasuries isn't that big. It holds them for a reason and would have to replace them with something else if it sold them off as a tactic in the spat.

The importance of FOMC unity is underlined by Bullard's comments and may be a focus in the minutes of the last meeting, due today. Hawks and doves have shown support for the current stance and the document may indicate whether that resolve is starting to fray on either side of the debate. They'll also probably give some insight into officials' assessment of global conditions before the trade tension flare-up.

Nasdaq futures led declines for U.S. contracts as trade tensions looked set to escalate. Asian and European stocks were little changed along with the dollar, Treasuries and gold. Oil fell with industrial metals. The pound fell as Theresa May came under pressure to abandon her Brexit deal and quit.