The S&P 500 finished yesterday on very soft footing after again failing to hold ground above 2740 in what was the lowest volume session since the week of Christmas. Major benchmarks from across the globe are all lower this morning; the DAX is -1.5% and the Nikkei -1%.
The upcoming week should offer a little something for every type of market participant from the casual to the day trader and from the weekly options spread trader to the four-week time frame! My best ideas for narrow range breakouts on trending pivots for trend-chasing traders are the S&P 500 and, possibly, crude oil and bitcoin. Other symbols are creating exciting range trades.
Void of any major economic news from Europe or the United States, the dollar rose further first thing this morning while stocks came under some pressure. As the session wore on though, the dollar eased back a little against safe-haven currencies while European equities remained under pressure, undermined by a growing sell-off in Italian bond markets. This has been in response to Italy’s populist parties reaching a deal to govern the country together, which has raised concerns about the nation’s future in the Eurozone.
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