Key Technical Signals and Correction Territory
What’s in Today’s Report:
- Key Technical Signals and Correction Territory
- Weekly Market Preview: All About Iran – Do We See De-escalation?
- Weekly Economic Cheat Sheet: Any Signs Higher Oil Is Impacting Growth?
Futures have reversed this morning’s losses and are sharply higher after President Trump announced a pause in strikes on energy infrastructure and cited “productive” talks with Iran.
This comes after President Trump threatened to “obliterate” Iran’s power plants if the Strait of Hormuz was not reopened to ship traffic (he implied a Monday night deadline).
Oil prices fell sharply in response to the U.S-Iran update from the President this morning.
Today focus will remain on the U.S./Iran war and we can continue to expect stocks to trade inversely to the price of oil. So, any signs of de-escalation (including social media posts or actual events) should make oil drop and stocks rebound while any signs of further escalation (again, including social media posts or actual events) will put more pressure on stocks.
Outside of geopolitics, there is one economic report today, Construction Spending (E: 0.1%), but that shouldn’t move markets.
