Index

U.S. benchmarks trekked lower last night and found strong major 3-star support. Price action has ping-ponged around ahead of the U.S. session.
U.S. equity benchmarks shook off a brief bat with reinvigorated volatility yesterday morning. After a blowout MoM May Retail Sales read, price action in the S&P 500 surged to its high of the session (YoY was -6.1%)
Better economic data bolstered risk sentiment and offset fears the virus is reemerging.
U.S. equity benchmarks opened sharply lower Sunday night and the weakness continued into Europe’s open after a slew of weaker than expected economic data from China.
Yesterday, U.S. benchmarks experienced their worst day since March, allowing some air to come out of the balloon.
Risk-assets are keying off a reality that has been clouded by trillions upon trillions of added liquidity. The Federal Reserve’s balance sheet has now surpassed $7 trillion.
Despite the Nasdaq-100 achieving a fresh record and the S&P 500 gaining nearly 50% over this time, we foresee the Fed holding ground as the aftermath of Covid-19 plays out.
Something is wrong when the buying is so blind that even the bankrupt companies nearly triple in a single session.
On Friday, the BLS reported 2.5 million jobs were added in May. Yes, added.
NFP surprised the market with job gains and unemployment falling to 13.3%.