It’s tax day 2019 but that fact has not dulled the bullish market sentiment with the QQQ and SPY within striking distance of all-time highs.  Asian markets closed mixed and subdued overnight but European markets are modestly upbeat this morning.  As I write this US futures are pointing to a modestly bullish open while waiting for the fireworks of big bank earnings reports.

Although within striking distance of all-time highs remember that means there is price resistance above that must be dealt with and defeated.  The DIA still has more than a 400 point hill to climb to test the all-time highs and that could be challenging to do with challenges that BA continues to face.  Let’s also not forget the small caps that are lagging way behind at the moment.  The bulls are without a doubt currently control but they do face challenges to consider as you plan your risk for the week ahead.

On the Calendar

We have more than 60 companies reporting earnings today.  Notable reports include C, GS & SCHW.

Action Plan

After Friday’s strong market performance on the back of big bank earnings the QQQ and SPY are within striking distance of all-time highs.  With another round of big bank earnings reports this morning can the bullishness continue.  At this hour futures are pointing to a modest open but that will likely change for better or worse as soon as earnings begin to roll out.  Asian markets closed mixed but mostly lower overnight but European markets are currently modestly higher citing optimism over US-China trade talks.

This weekend the President once again public chastised the FOMC stating the market would be a lot higher if the Fed would stop worrying about nonexistent inflation.  I suspect that kind of pressure will do little to dissuade Mr. Powell and the other voting committee members.  Remember earnings season and very volatile with large gap up or gap down market opens.  Don’t get caught up in the hype and drama and make the mistake of chasing the gap.  Allow the market to open, watch the price action, making sure buyers or sellers support the gap before making entry decisions. 

Trade Wisley,

Doug