The S&P 500 traded to a high of 2732 early yesterday and regained 1% from Tuesday’spullback. As we discussed earlier in the week, this consolidation is fundamentally and technically healthy. In fact, the S&P has held ground in the face of the Dollar Index rising 1% and the 10-year Note hitting the highest yield since 2011. T
The S&P gave us exactly what we talked about yesterday, a constructive session with buying interest. The Russell 2000 has quietly been a leader for much of the post-correction trade and yesterday it set a new all-time high.
Equity markets are bit subdued this morning. Price action struggled to hold ground near major three-star resistance into yesterday afternoon and retreated 0.75% from the 2741.25 high. Overseas markets are very mixed this morning but not far from unchanged. The heavy slate of data has left much to be desired; German GDP and Sentiment missed, as did Chinese Fixed Asset Investment, British jobs and Eurozone Industrial Production.
Equity markets finished a strong week on firm footing Friday after President Trump’s speech on drug prices. There was some de-risking ahead of the speech as the S&P 500 retested the overnight low and traded about 0.5% from the session high on fears the speech would attack the biotech and healthcare industries.