S&P 500, Nasdaq and gold as the most infation sensitive assets benefited from the expected core PCE coming in at least in line with expectations. For all the selective and uneven reactions to recent series of good earnings, macroeconomic conditions continue favoring further stock market gains. The dual punch of positive global liquidity and strengthening of soft landing odds, works like magic.

Nasdaq is slowly starting to outperfom S&P 500 again, which is what the bulls want to see – and it‘ll be accompanied by relative Russell 2000 weakness (saw biotech yesterday – careful about keeping prior gains intact) as rotations further kick in. True, they could be stronger, but this isn‘t yet the time to consider ringing the bell at the top – more is to come still.

Time of caution and selectivity as we head into today‘s manufacturing PMI that I expect not to disappoint – careful about no landing narrative getting a boost in case of a strong beat.

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

Gold, Silver and Miners

Gold indeed reacted sensitively, and is ready to rise some more, with silver of course taking a back seat as inflation itself will be lagging for a while longer. Don‘t expect though miners‘ outperformance just yet.
 

Crude Oil

Crude oil is to catch up today and probably Monday as well – and oil stocks are to still keep underperforming black gold. The recent dips were bought, and this time I don‘t consider the upper knots as signs of price rejection.

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