Not much happened yesterday apart from a bit of short covering, China stimulus, Yields lower, Small M&A and a few stock news events. Lots of data this week that could influence the Fed around the Sept meeting will be in focus. Volumes were terrible yday as the UK market was shut which led to lower volumes across the globe. The S&P & NDX tried both to break the intraday highs 3 times and failed yesterday(Big program yday). Seems we are in a short-term trading range and with the lack of liquidity in the market.
The data we have this week will decide the direction of the market. It’s a wait and see game. Feels the bond market is pushing us around now. Just remember the CTA’s are heavily short bonds.. The pain trade is to the upside so yields could come lower which should be good for the market.. Let’s see if this data warrants this move this week. A few other comments this morning of interest. China banks weigh further deposit rate cuts to boost growth. Also, Tropical storm Idalia is now a hurricane which is extremely dangerous and will make landfall on Wednesday in Florida.