Futures are indicating the markets will push to all-time highs today. This is based on the news that there appears to be some kind of “Tariff Truce” with China.
This being the 4th of July week, it’s a little like Christmas – the trading week is short because the 4th falls on a Thursday. This means Friday is likely to be a lower-volume trading day as most will extend their vacation into a 4-day event.
Expect the shortened trading week to have lower volume and exaggerated movements. Looks like a strong pop higher for Monday. The question is whether or not there will be much follow-through. Markets could drift even higher this week. It’s next week we should see the reality check.
For the time being, enjoy the ride. Setting all-time highs is useful on the technical front. It demonstrates the market has more room to grow before a correction. The question is, can we hold this level, or is the the last bright blink before the star burns out?
We’ll need a bit more info before we can make that call. But based on the still solid underlying economic data, it looks like things can keep pushing higher yet.
For now, keep an eye on the 3000 number for the SPX. That’s the next big fat round number market participants (and yes, probably most of the algo’s too) are keeping an eye on.
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