Stocks Fighting Market Divergence
Monday recap: Equity markets were buoyed by the best chance we’ve seen yet of a Greek financial assistance deal and another positive data point from the US housing sector.
While the deal is far from “done” the Greeks actually brought something to the negotiating table other than a “rinse repeat” rant on the evils of Austerity and the need to preserve the sanctity of the Eurozone.
Both NASDAQ +0.7% at 5153.97 and the Russell 2000 +0.6% at 1293.39 closed at fresh all time highs for the second time in 3 days while the DJIA and S&P 500, both +0.6% each have a bit more work to attain new closing high status.The NYSE Composite Index; NYA, rallied +0.8% to 11,129 and regained its 50 day moving average for the first time in 3 weeks.
The DJ Transports +0.8% at 8480, continued its rebound rally off the 8250 support level, but closed well off highs of the day after failing to hold a move through the first real resistance level at 8500.
Where does this leave us? Thursday is the next key date in the Greece/EU negotiations. I’m sure any further sign of progress towards a deal will get some market cheer.
Today we get a couple macro data points with the potential for market impact. The May Durable Goods report at 8:30 AM will give us a read on the manufacturing sector which has been anything but vibrant this year. Consensus is for a headline reading of -0.6% and +0.5% ex transportation orders.
Housing data has been shown steady improvement the last 3 months and at 10:00 AM we’ll see if New Home sales for May can back up the uptick we saw from existing home sales yesterday. Consensus is at 525K vs 517K in April.
The Early Line: Stock Index Futures are pointing toward a moderately higher opening in a couple hours. Watch that 2130 resistance level on the S&P 500. We got within 1 point of it yesterday late morning before the market backed off..
There’s 6 trading days left in the 1st Half of 2015.
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