📈 Market Lift?

Yesterday's action and today's data are significant.

Market Lifting or Oversold Bounce?

Yesterday we had some constructive movement in the market. After gapping down, we saw buyers come in all day, closing at the high of the day on the indexes.

The S&P futures put in a bullish candle that we’ve seen mark bottoms in the past:

That hammer bar could mark a temporary low in the market, however we know that PPI and CPI are going to be the key determining factors of whether we’ve truly bottomed or not.

Tying in yesterday’s newsletter, it is important to note that the 10-year treasury did still move higher along with equities yesterday.

We aren’t seeing a shift in equity risk premium - bonds are still gaining traction over equities based on the current position of the 10-year.

So it’s possible that this is nothing more than an oversold bounce - we will have to wait and see.

We did see some constructive movement in terms of market breadth. We saw the percent of stocks above key moving averages tick higher which is a good sign.

We want to see them continue to push higher if we are going to see a sustained move higher in the market.

There is a ton to unpack with what transpired yesterday in addition to the economic data that comes out this morning and tomorrow.

To understand the most important things that you need to be watching for, watch this video: