Good morning, I think you are about to have a good day… US...

Good morning, I think you are about to have a good day…

 

US indices on Wednesday's close:  SPX: (+2.30%), IXIC: ( +2.95%), Dow: (+2.50%) and RUT: (+2.51%).

 

Sectors: Information Technology (+3.44%) led a very broad based rally that was light on safety plays, leaving only the Utilities sector (-0.12%) in the red for the day.  A/D Ratio : +1774, NYSE breadth: 8.54:1, NASD breadth:7.45:1, TICK cumulative: moderately strong from the open, while roll cum TICK is still trending down.  NYSE MOC: moderate selling into the close followed by a typical flip to the upside leaving a slight positive bias to the buy/sell ratio and a value of +153Mto buy.   NYSE total volume and SPX volume at 2.464B was better than the last few sessions.

 

The treasury market was flat, leading to much speculation while the USD fell half a percent, which may lead to some exuberance the Asian session gets underway.

 

Today, the 'Chancellor of the Exchequer'came on bended knee before the 'Monarch'.  You students

of history and law will know the contentious relationship between the two; you probably spotted history rhyming today, as the US Fed Chair avoided the virtual prison tower by  altering his tentative stance vis interest rate trajectory.  Earlier this year, the Chair startled markets by saying that we were a long way from 'neutral', while today he opined that we were just under neutral. The argument going on now is whether he did this because of new realizations about the world's collective economy , emerging market strife or because the Sovereign in question has been voicing disdain for the Fed's interference in his plan to make USA 'great again'.  Perhaps it was all of the above, but arguments as to the independence of the Federal Reserve will be at the fore for the next few days.  The Chair did warn that markets were in strife if considered risks were to materialize.  Not that you need another headline but here is what WSJ has on its front page.

 

The debate between bulls and bears is still raging but the battle has taken a turn in favor of the cattle... the algos that would govern a seasonal rally are now being primed toward phrasing to do with trade wars, spending budgets and the Russia investigation, rather than internal struggles over interest rates.

 

SPX 30 minute view to be updated…