Hello Everyone,

Comments:

Equities remained under pressure last week, weighed down by ongoing tariff concerns and economic uncertainty (with some weaker data points).  However, Friday traders overlooked a very weak U of Michigan Sentiment Report and stocks bounced sharply fueled by the avoidance of a government shutdown. From a technical perspective, the major indexes were quite oversold into demand zone with positive divergence aiding the cause. 

This week we have several key reports/events including Retail Sales (Monday),  Jensen Huang's NVDA keynote address (Tuesday), and the FOMC and Powell Speech (Wednesday). Always wise to stay on top of Trumps tweets as well. 

We should expect significant positive inflows into quarter end from rebalancing which should provide a tailwind for equities. Overall, the technical setup favors a continuation of the bounce but macro risks remain in play. A dovish Fed could trigger a stronger rally while weak Retail Sales or escalating tariff concerns could weigh further on sentiment and thus renewed volatility.  The bulls have the ball so let's see how far they can advance with numerous hurdles (resistance levels) overhead. 

Here's a link to Tonight's Newsletter.

Please take a moment to look at the trade ideas.