Strong Banks / Point of inflection for the Markets
Bank Earnings have been great!
Though, The market wasn’t overly thrilled about it.
We believe this is due in part to the uncertainty it caused regarding the fed rate path.
The bank failure(s) that occurred, and fear of continued failures, cast doubt on the feds ability to continue to raise rates. This elevated markets, in our opinion, in conjunction with favorable inflation and NFP reports showing a cooling economy.… then the bank earnings arrived snd acted as a headwind to the indexes.
What we think is important to watch for:
1) ES1! 4200
This region has been a repeated battleground for
Price action. and a close above it .. or failure at it, would be a good indicator for midterm direction.
2) FED comments on the banks earnings
Overall bullish on the market- but I do think we may range for a bit longer.
3) XLF may yield sustained alpha
Though, The market wasn’t overly thrilled about it.
We believe this is due in part to the uncertainty it caused regarding the fed rate path.
The bank failure(s) that occurred, and fear of continued failures, cast doubt on the feds ability to continue to raise rates. This elevated markets, in our opinion, in conjunction with favorable inflation and NFP reports showing a cooling economy.… then the bank earnings arrived snd acted as a headwind to the indexes.
What we think is important to watch for:
1) ES1! 4200
This region has been a repeated battleground for
Price action. and a close above it .. or failure at it, would be a good indicator for midterm direction.
2) FED comments on the banks earnings
Overall bullish on the market- but I do think we may range for a bit longer.
3) XLF may yield sustained alpha