S&P 500 charge higher continued, and high beta plays didn‘t disappoint. Energy, financials, Russell 2000, emerging markets – all on fire. After Thursday‘s climb of the bear market rally wall of worry (we‘re rather to meet recession and not a soft landing – the contraction will be mild till Q3 2023), we‘re in for a daily deceleration today as I don‘t think yesterday‘s complacency would last till the closing bell.

The weakness will likely show up in bonds first, underpinning the dollar – and the rest would be history. All on a daily basis – you can look forward to extensive pre-FOMC analysis next week!

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Let‘s move right into the charts (all courtesy of www.stockcharts.com).
 

S&P 500 and Nasdaq Outlook

S&P 500 bulls will have to defend yesterday‘s initiative – 4,040 is the first line of support, followed by (high) 4,010s. Any downswing attempt is thought likely to be confined to the rough midpoint of these two strong supports‘ range. I don‘t think 4,075 would be overcome today.
 

Credit Markets

Bonds give me a pause – we‘re likely to see stocks play defense first, especially on another housing data release (disappointment).

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