Although most of the country will be dealing with cold conditions over this 3-day weekend, I would not rule out the possibility of light and choppy day as traders get way early to extend their time off.  Even though indexes seemed to struggle to hold the bullish momentum, there was little to no fear that accompanied yesterday’s profit-taking.  As we slide into the uncertainty of a long weekend, it would not be odd to see additional profit-taking with traders reducing risk.  As long as index trends and support levels hold banking, some recent gains may be a wise move.

Asian markets we mostly closed to as they celebrate their new year.  European markets trade mixed but mostly flat this morning as they react to the 9.9% economic slump reported in the U.K.  U.S. futures currently suggest a slightly lower open with light earnings and economic calendars.  Plan your risk carefully as we head into the weekend.

Economic Calendar

Earnings Calendar

On the Friday earnings calendar, we have just about 40 companies expected to reports quarterly results.  Notable reports include D, ENB, FTS, MCO, NWL, & WPC.

News & Technicals’

Although there was little increase in fear, the indexes seemed to struggle to hold on to the bullish momentum.  Perhaps it was a light recognition that the Jobless claims were higher than expected but, it may have been nothing more than the 3-day weekend and traders heading out early.  The White House secures a deal for more than 200 million more Covid vaccine doses as the public finds it difficult to access the shot.  The United Kingdom reported that its economy contracted by 9.9% in 2020, the worst performance since the Great Frost of 1709.  Yesterday the U.S. reported a deficit expectation of more than 2 Trillion dollars for 2121, not including the 1.9 Trillion stimulus or the college loan forgiveness moving through Congress.  That said, Speaker Pelosi intends to include the 15 dollars per hour Federal minimum wage mandate in the stimulus package.

We have a light day on the earnings calendar with only a Consumer Sentiment report for traders to react to at 10 AM Eastern.  With a 3-day weekend ahead, price action could become relatively light and choppy as traders get away early to enjoy the extra time off.  Recently, something of a rare event in the current market is seeing the U.S. futures pointing to a flat to slightly lower open this morning.  Perhaps a little profit-taking is possible heading into the weekend?  Plan your risk carefully.

Trade Wisely,

Doug