A weaker Leading economic indicator (down 21 months in a row) is supportive for lower interest rate to day as TLT is up 1% and 10 year Treasury yield is down to 4.079% from last Friday's 4.198. Though the odd of a March rate cut has now dropped to 40.5% from two week's ago's 75%.
After breaking above all time high 4818.62 last Friday, the breakout momentum is driving the S&P 500 up more this morning. It is now likely that it will rally towards the psychologically important 5000 level.The Dow and Nasdaq Composite are also making all time high, and their resistances are 40000 and 15600 respectively.
As the indexes are making new highs, tech stock prices are in extended levels. Whether the rally can continue or not will depend on the results of corporate eanings. Another thing that's worrisome is that the Shanghai Composite index has been down on a down trend since its February high in 2021 and is now at 5 year low. The question is if China has trouble, will the world still safe?
Influential earning reports this week are as follows:
Monday: UAL; Tuesday: JNJ, PG, NFLX, VZ , TXN, GE,MMM, LMT; Wednesday: TSLA, ASML, SAP, IBM, T, LRCX; Thursday: V, INTC; Friday: AXP.
Bitcoin continues its downside correction and is down $968 to $40674 ,testing the $40000 support level. However Bitcoin related stocks are mostly up today as COIN +3.37%, RIOT +2.72%, MARA +1.80%, BTBT +3.16%. This divergence may be explained by most Bitcoin related stocks are mostly down over 50% and Bitcoin is only down 18% from recent highs. So, Bitcoin related stocks may rally before Bitcoin.
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