- S&P 500 futures -1.1%
- Nasdaq futures -1.4%
- Dow futures -0.7%
Despite the stirring comeback in the cash market yesterday, US futures are pointing lower for the time being. Much like how before it was too early to draw much conclusions from the early rises in the past week, the same can be said for the early drop above as we head towards European morning trade.
That said, one day doesn’t make a trend. Hence, it will be important to see how the cash market fares later to be sure of any potential further bounce in equities this week. Looking at the charts:
The S&P 500 managed quite the bounce from the July lows but price is still keeping below the 200-day moving average (blue line), so that keeps sellers in control.
Meanwhile, the Nasdaq managed to pull up but is still keeping below 14,000 and is still some ways off from getting back to its key daily moving averages.
So, even if yesterday’s comeback was rather impressive, it still doesn’t mean much as the charts highlight some potential for a further retreat. However, I would argue that sentiment also matters a lot in this market and if there is a resounding turnaround in the mood today, that will bode well for stocks in the sessions ahead.