With the election silly season in its final stretch and the President back at work, expect the political spin and uncertainty of what happens next to keep the price action volatile and the overall market on edge.  The CDC is warning that the virus can spread through airborne transmission and infect others more than six feet away.  Joe Biden is calling for the President to institute a national mask mandate.  A tweetstorm is surly to soon follow on the subject. 

Asian markets closed mixed but mostly higher as Australia’s central bank held steady on their interest rate policy.  European markets are trading with modest gains across the board as the US futures point to flat open ahead of economic data and a speech from Jerome Powell.

Economic Calendar

Earnings Calendar

On the Tuesday earnings calendar, we have just three confirmed earnings reports.  Notable reports include PAYX & LEVI.

News and Technicals’

The President is back in the White House medical unit while still recovering and is already receiving negative feedback for returning to work while still infected.  Joe Biden says the President bears responsibility for Covid-19 infection and calls for a national mask requirement.  With just four weeks until the election, I suspect both candidates will raise the bar on politicalizing the pandemic.  The CDC has now acknowledged that the virus spread through airborne transmission that infected others more than 6′ feet from one another.  Google has rebranded its office tools as Workspace as it goes head to head with Microsoft Office working to gain market share as more and more people are working from home.  A trend I suspect will continue over the coming years.  According to reports, teen spending has dropped to a two-decade low as the pandemic pressures have affected their parents and dramatically cut service jobs that teens often hold. 

After a surge of buying pressure yesterday, indexes reached out to test price resistance levels in the indexes pushing the T2122 indicator into a short-term overbought condition.  IWM experienced the most significant technical improvement on the day with oil and financial sector stocks bouncing up from recent lows.  Futures struggled around that flatline most of the evening and continue to this morning, although they well off their overnight lows.  After partying hard yesterday, it’s possible, the bulls need a little rest, but let’s hope the bears are not fortified in the price resistance above ready to attack.  With a light day on the earnings calendar, economic reports, Jerome Powell’s speech, and the stimulus news spin will likely keep the pice volatility high.

Trade Wisely,

Doug