Market Blast - October 7, 2024

The Fuse

Equity futures are down today after more fighting and threatening in the Middle East.

Interest Rates are on the rise as bond traders see last Friday’s strong jobs report as a sign the Fed may not be very aggressive in cutting rates in this cycle. Fed funds futures are back down to about 2 cuts for the end of 2024, if that. The 10 year is back up above 4%.

More bombings over the weekend is causing some angst in the markets here and overseas.

Earnings later this week from Pepsi, Delta, JP Morgan, Wells Fargo and Blackrock.

Lots of Fed speakers out this week, a slew of them as they intersect with some important inflation data.

Breadth was pretty strong Friday as one would expect, with a push up in prices. There is plenty of air however and with the oscillators negative there is a potential for downside, at least in the short term. New highs continue to dominate new lows, this indicator is on a strong buy signal.

Volume is starting to percolate, and that is a good sign. Volatility is up as investors/traders are getting nervous, but that means stocks are being sold, perhaps for the wrong reason.

Stocks are still looking at lower moving averages as support areas. The SPX 500 closed at a weekly high as did the Dow Industrials.

The Internals

Internals

What’s it mean?

A strong day Friday with a solid labor report to kickstart the rally. VOLD was strong all day and finished on its highs, ADD was also showing good resilience. Ticks were spread out, which means both buy and sell programs all session long. TRIN was notably lower, which tells us the strength of the breadth and rally was good. VIX headed lower as well.