We are coming to the next phase of the divergence. I woke up this morning, turned on the box and first commentator I saw said we’ve started the next leg up in the bull market. Some of these people take it for granted the market is going up again. Has anyone noticed the Dow and SPX peaked in January?
Nasdaq (NDAQ) announced on July 2 that it will launch a suite of interest rate products— DV01 U.S. Treasury Futures — on the Nasdaq Futures Exchange (NFX) by later this month pending regulatory approval.
This is supposed to be a seasonally bullish period. From the end of quarter window dressing through the July 4 holiday the stock market tilts to the bullish side; not always or every year but generally speaking. Why the markets are open on July 4 is another story, but consider the first and last hour without the midday doldrums.
The recovery in the stock markets could not last long and by the close of play yesterday all of the earlier gains evaporated. Although equity indices opened higher in Europe this morning, they have since turned mixed with shares in Germany falling and UK remaining positive. U.S. index futures were still slightly positive at the time of this writing, but should Europe turn decisively negative, I can’t see why Wall Street wouldn’t follow suit.