Technical Updates (S&P 500, 10 Year, Copper)

What’s in Today’s Report:

  • ECB Decision Takeaways (Not As Dovish As Expected)
  • Why ECB QE Infinity Might Not Work
  • Should We Buy European ETFs?

Futures are slightly higher as “chatter” about an interim U.S./China trade deal continues to build.  Otherwise, it was a quiet night.

Nothing official has been released or confirmed, but based on multiple press reports the market now expects: 1) No more tariff increases and 2) Large agricultural purchases by China  (which is essentially where we were back in June, although now we have more actual tariffs).

Economically, EU trade balance met expectations.

Today the focus will be on Retail Sales (E: 0.3%) and for stocks to continue this rally, we need to see a “Goldilocks” number (better than expectations but not too strong).  If that happens, then the S&P 500 will hit new all time highs, likely led by cyclical sectors (XLY/XLF/XLB/XLI).