The Fuse
Futures are up sharply this morning as the worries about the banking crisis are floating away. The reduction in interest rates has tempted risk appetite to reappear, but we are not seeing the very strong breadth in Nasdaq that we are accustomed to seeing, so we have a skeptical eye.
We are looking to see if 4K holds on the close this week.
Companies continue to cut staff, today Roku announced their intentions to cut 6%, while RH last night said the same. Investor confidence survey was higher, and survey of business uncertainty was actually better than expected.
Very strong earnings from Micron pushed that stock higher, after the close some disappointment from retailer RH.
End of the month window dressing continues. Volatility has fallen sharply, lots of buy programs are hitting this week.
We now have the buy signal that showed up Tuesday and confirmed yesterday. Stocks may start to run higher into month end.
Volume was weak but higher than the prior day, so an accumulation day was notched.
4K fell today on the big rally session. Next resistance is 4100, which might be challenging. On the downside, 3900 clearly is good support and below there we have 3850.
The Internals
What’s it mean?
A very strong day from the outset, notice the VOLD was straight up all session long. Volatility collapsed and is now pressing towards 19%, a danger zone. The ADSPD showed a trend up day as well. Some followthrough would be beneficial to the bull case.
The Dynamite
Economic Data:
- Thursday: Jobless claims, GDP estimate for Q4
- Friday: PCE, Michigan sentiment survey
Earnings this week:
- Thursday: EVGO, BB
- Friday: N/A
Fed Watch: Fed speakers are out this week. Fed funds futures seem to lean toward a pause at the next few meetings.
Issues/Stocks to Watch this Week
Still unresolved, this banking crisis remains a hindrance to the markets.
MU – Micron earnings are going to be watched closely as the chip sector has made a huge leap forward.
End of month/quarter buying that often happens with some vigor.