Stock futures are pointing to a slightly higher open as of this writing, but I would note that trader sentiment (one way or another) is likely to shift quickly today and over the next couple of weeks. Outside of any comments from the various central banks, we are to see a number of economic indicators- including the all important ISM manufacturing number this morning and the employment report on Friday.
The U.S. stock market has been meandering since approaching the all-time highs on August 21.
The SPY remains in a trading range, as traders left for vacation and those that remained on the trading floors await incoming data.
Despite the lack of any directional conviction on the SPY, the small-caps are talking.
The Ishares Russell 2000 Trust (ticker IWM) has not confirmed the highs in the broader market. In addition, this is the fourth time the index has restested the $82 level. Each time the IWM has approached this level, volume has pulled back, indicating to me that investors are not interested in small-caps at these or higher price levels.
This is while the cyclical index (ticker ^CYC) pulls back against the non-cyclical stocks (ticker IYK).
This is occurring while traders push back into treasuries. The Ishares Barclays 7-10 Treasury Bond fund (ticker IEF) is pushing higher again, with Friday's action occurring on more than 900,000 shares versus August 3 and August benchmark volumes of 765,000 and 850,000 shares, respectively.
This setup suggests to me that a test of the highs are in the offing. If this does occur, capital could be pulled from the equity markets.
The U.S. stock market has been meandering since approaching the all-time highs on August 21.
Despite the lack of any directional conviction on the SPY, the small-caps are talking.
This is while the cyclical index (ticker ^CYC) pulls back against the non-cyclical stocks (ticker IYK).
This is occurring while traders push back into treasuries. The Ishares Barclays 7-10 Treasury Bond fund (ticker IEF) is pushing higher again, with Friday's action occurring on more than 900,000 shares versus August 3 and August benchmark volumes of 765,000 and 850,000 shares, respectively.
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