European indices are pushing forward with gains of around 1.5% on the day while US futures are also gaining further ground on the session so far. S&P 500 futures are now up 0.7%, Nasdaq futures up 0.8%, and Dow futures up 0.6%.
All looks to be well in the equities space after quite a modest showing yesterday but don’t let the optimism here blind you from the fact that the real test only comes tomorrow. The US consumer inflation report is the key risk event on the agenda this week and that will set the tone on Fed expectations and in turn, equities sentiment before the week closes.
As much as equities are holding better today, the technicals are still rather unconvincing for the most part.
The S&P 500 remains trapped in between its key daily moving averages and the Nasdaq is still some ways below its own 200-day moving average. Put together, that doesn’t really scream at a strong bullish undertone for the time being.