Yesterday rally was incredibly emotional and dum.
I would argue if the whole move up was generated by news trading algos, since it took less then an hour to get all the way up but that was it.
Today as expected everyone will come to their senses and remember where we are and what is an underlying macroeconomic and fundamental data is telling us for a while.
We are late in a business cycle, most of the indicators flash working signs and within next 12 months it's not going to get any better.
Earning season showed a slow but consistent deterioration of corporate results. Analysts are consistently lowering their estimates and there is no good news there whatsoever.
So there is no good reason why a delayed tariffs would have such an impact on fundamentals.
Looking at today's trading in EU there is not much to be happy about. US Index Futures are lower, but it is not telling us much.
Still I would expect the market to give up most of its yesterdays gains and get back to where it suppose to be = lower.
Back below 2900 is where we should be looking at today.
I would argue if the whole move up was generated by news trading algos, since it took less then an hour to get all the way up but that was it.
Today as expected everyone will come to their senses and remember where we are and what is an underlying macroeconomic and fundamental data is telling us for a while.
We are late in a business cycle, most of the indicators flash working signs and within next 12 months it's not going to get any better.
Earning season showed a slow but consistent deterioration of corporate results. Analysts are consistently lowering their estimates and there is no good news there whatsoever.
So there is no good reason why a delayed tariffs would have such an impact on fundamentals.
Looking at today's trading in EU there is not much to be happy about. US Index Futures are lower, but it is not telling us much.
Still I would expect the market to give up most of its yesterdays gains and get back to where it suppose to be = lower.
Back below 2900 is where we should be looking at today.