E-mini S&P 500 (September): Settled at 4213.75, up 60.25
E-mini Nasdaq-100 (September): Settled at 14,130, up 95.00
What a rebound! Value roared back yesterday: the Dow gained 1.83% to the S&P’s 1.45%. Better yet, the rally didn’t come at the expense of Growth stocks— the Nasdaq still gained 0.68% and every sector was positive.
The strong session pinned the S&P’s settlement at the top end of our rare major 4-star resistance. Yesterday we noted that a close above here would be “extremely bullish.” We furthered that notion in our daily Midday Market Minute, saying the market is most bullish when indices work together; there’s a series of levels between the S&P and Nasdaq that could allow them to feed on each other.
Fundamentally, Federal Reserve commentary is front and center to start the week. We noted here yesterday that St. Louis Fed President James Bullard’s (a 2022 voter) CNBC interview Friday morning may have flushed out the hawkishness, paving the way for a Jekyll and Hyde approach where committee members appear more dovish this week.
New York Fed President John Williams, a permanent voting seat, said “more progress is needed before the Fed should scale back support.” He added that he wasn’t concerned with the high demand their Reverse Repo facility is experiencing.
Next up today is San Francisco Fed President Mary Daly at 10:00 a.m. CT— she's a 2021 voter and known as one of the more dovish members. Most pivotal today, though, is of course Fed Chair Jerome Powell, who begins a Congressional testimony at 1:00 p.m. CT. He’ll certainly field questions on the bank’s inflation expectations and the surprise sharp revision higher from 2.4% in March to 3.4% last week, after only 2 data sets.
Existing Home Sales came due at 9:00 a.m. CT, along with Richmond Fed Manufacturing. Also at that time was Eurozone Consumer Confidence, and ECB Executive Board member Lane spoke then. He’s followed by Schnabel, also an ECB Executive Board member, at 12:30 p.m. CT. Lastly, there’s a U.S. 2-Year Note auction at noon CT.
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