A rebound in the tech sector bounced the QQQ off of trend and price support helped to push the SP-500 within 6 points of a new record high.  It seems unlikely to me that we get that close to a big market headline, and the institutions fail to push it through.  However, we still have to deal with Jobless Claim data and a big day of bond auctions with rate and currency pricing implications digest today that could create some price volatility.  Tuesday afternoon reminded us that the bears are still out there and their restless, hungry, so stay focused and flexible should they happen to find some inspiration in the news.

Asian markets closed mostly bullish overnight even as Australia’s jobless rate hit a 22-year high.  European markets appear to be on the cautious side this morning, trading slightly lower as they monitor jobless numbers.  US futures are choppy and flat this morning while poised to set a new SP-500 record as we wait on earnings, jobless claims, and significant day of bond auction data.

Economic Calendar

Earnings Calendar

The Thursday earnings calendar is the busiest day of the week, with 124 companies reporting quarterly results.  Notable reports include AQN, AMAT, BIDU, BAM, FTCH, GLOB, IQ, NTES, TPR, & TK.

News & Technical’s

Ahead of Jobless Claims and a big day of bond auctions US government debit prices are rising this morning.  Today the US Treasury will auction $35 Billion in 8-week bills, $30 billion in 4-week bills, and $26 billion in 30-year bonds.  Interestingly gold futures are trading lower this morning while silver futures trade slightly higher.  Negotiations on the next stimulus bill seem to have ground to a halt and descended into rhetoric driven finger-pointing match of whos to blame.  Which side blinks first is anyone’s guess, but they do both seem to agree on the $1200 taxpayer payments.  There are new concerns about the accuracy of COVID test data.  According to reports reported new infections have declined 19% over the last 7-days, but testing has fallen by as much as 12% over the same period.  Texas cases have dropped off by 10%; however, the number of tests fell 53% over the last two weeks.  The big question, are the numbers artificially skewed, or are we gaining ground in the pandemic battle?  Only time will tell as the nation prepares to reopen schools and colleges.

Yesterday’s rally closed the SP-500 just 6 points below new record highs with a rebound in the tech sector leading the charge higher.  The pullback in the QQQ tested support and trend with buyers surging back into the big-5 tech stocks.  The bearish price action on Tuesday afternoon was unable to follow-though as we expected.  All eyes are on the weekly jobless claims coming out at 8:30 AM eastern.  Stay focused and flexible with a new record close at hand and the T2122 indicator suggesting an overextended market we should prepare for just about anything to occur.

Trade Wisely,

Doug