Rumors of a US/China negotiations breakthrough, declining 10-year Treasury yields and busy earnings and economic calendars the market has a full plate this morning.  The question is will it be a satisfying meal or will it cause indigestion?  On the Economic Calendar the GDP according to consensus is expected to decline and Jobless Claims rise slightly at 8:30 AM Eastern.  One has to wonder if that could fuel growth concerns or if the numbers will come in better than expected to reduce those concerns.

The technical s of the index charts don’t provide much in the way of clarity either.  The QQQ remains the market leader holding on to a nice uptrend while the DIA and IWM struggle with resistance in a modest downtrend.  The SPY appears to want to break the tie but continues to hover just above support and below resistance with indecisive price action.  I think it’s safe to say anything is possible so plan accordingly.

On the Calendar

We have nearly 120 companies reporting earnings on the calendar today.  Notable reports include, ACN & QIWI.

Action Plan

Futures were looking lower last night as Asian markets reacted negatively to the declining 10-year treasury yield.  However, with the rumor of a US/China breakthrough in the trade negotiations European markets are up across the board and the US Futures have responded bullishly bouncing off their overnight lows.  As I write this Futures point to a flat open but with nearly 120 companies reporting earnings and a full economic calendar it’s anyone’s guess how we open trading today.

The consensus is suggesting a decline in the GDP number and a slight increase in Jobless Claims 8:30 AM Eastern.  It will be interesting to see if these two reports will add to or take away from the economic slowdown concerns.  The DIA and the IWM are still in technical down-trends under significant resistance levels even after the nice recovery off of yesterdays lows.  The SPY continues to hover between support and resistance and the QQQ remains the strongest of the indexes holding on to its uptrend.  With so many factors pushing and pulling the market today anything is possible.

Trade Wisely,

Doug