Futures pointing to potential record open in U.S. markets… the S&P 500 closed at all-time highs on Friday, capping off 7 out of 8 weeks higher… interestingly enough, the markets (aside from small-caps) do not look extremely overbought at this time- in fact the NYSE Comp Index remains well below its previous highs, with a bullish trend on the daily charts. So if the NYSE can break above 13,000 over the next day or two, it suggests U.S. equities to continue to press higher still over the short-run:
NYSE: Awaiting a breakout above 13,000:
China / EM will be strong over the short-run… this should help to boost U.S. stocks further in our opinion. The Shanghai Comp had recently been pressed into deep oversold territory, after a multi-month correction that began in late January. We are still seeing the effects of an oversold rally here- which will help most other countries as well (ie the VEU should trade higher today as well):
SHCOMP: more oversold rally strength here…
Materials and broad tech were the leaders on Friday… the DJ Internet Composite had a strong day and looks likely to retest its prior highs in sessions ahead:
DJ Internet Index: looks to retest the highs…
Economic calendar looks light today… and we expect volumes to be generally low this week as the U.S. slides into the Labor Day holiday weekend ahead. We are still using 2800 as initial trading support on the benchmark S&P 500.
Dan Wantrobski, CMT