Technical Market Update
What’s in Today’s Report:
- Technical Market Update
- Two Events to Decide the Year
- Weekly Market Preview
- Weekly Economic Cheat Sheet (All About Inflation This Week)
Futures are surging and global markets are up 1% thanks to apparent progress on the EU/Italy budget standoff.
Italian deputy PM Salvini said over the weekend that Italy wasn’t “stuck” on the 2.4% budget deficit, adding to the momentum that a compromise might be achieved.
Economic reports overnight were again disappointing. Japanese flash manufacturing PMI missed estimates (51.8 vs. (E) 53.0), as did German IFO business expectation (98.7 vs. (E) 99.2.
There are no notable economic reports or Fed speakers today, so focus will remain on the tech sector. Tech traded with some decent relative strength Friday, and if it can build on that today, then we could see a good bounce back rally. Conversely, if tech fails to rally, then so too will the boarder markets.