New records across the board in the index ETF’s as the bull regain control of the trend.  In an all-night session that included a blizzard of amendments, the Senate passed a budget resolution necessary to move forward with a $1.9 Trillion stimulus package.  That has futures popping to new highs this morning as we wait for the Employment Situation numbers before the bell.  The bulls are back in control of the trends, having cleared resistance levels, but after such a strong rally, it may be wise to take some profits heading into the weekend.

Asian markets closed mixed but mostly higher overnight, and European markets trade with modest gains this morning.  As global stocks near record highs, the U.S. futures point to a bullish open ahead of the monthly Employment Situation report.  How the market opens will depend on that report’s results, so traders should plan for a dose of price volatility heading into the open.  Have a wonderful weekend, everyone!

Economic Calendar

Earnings Calendar

We get a little break today with about 40 companies reporting quarterly results. Notable reports include CAH, EL, ITW, JOUT, LIN, REGN, SNY, & SPB.

News & Technicals’

The bulls kept up the pressure yesterday, lifting the SPY, QQQ, and IWM to new record highs, with the DIA squeaking out a new high in a last-minute buying surge.  After an all-night session, the Senate approved a budget resolution as with a slew of resolutions necessary to clear the path as Democrats rush to pass the hoped-for 1.9 Trillion Covid relief bill.  Johnson & Johnson is attempting to move forward with its Covid vaccine asking the FED for emergency authorization.  After Robinhood removed trading restrictions on GameStop and all other stocks, GME shares climbed 15% in the premarket.  Perhaps the short-selling frenzy still has legs after all. 

Yesterday’s rally cleared the index charts’ price resistance levels, and the VIX again saw a calming as the bulls regained control of the trend.  Today before the bell, we will get the latest reading on the Employment Situation. Still, the futures point to a bullish open as Senate moves forward with a procedural vote as they hurry to pass the next stimulus bill.  It would seem to hope more deficit spending means jobs data no longer matters to this market.  That said, it would be wise to avoid overtrading and take some profits heading into the weekend with the T2122 indicator hinting at a short-term overbought condition.

Trade Wisely,

Doug