With Apple’s expectation-smashing performance now in the rear-view mirror, traders will turn their attentions to the FOMC and their policy statement later today.
As stocks drive deeper into overbought extremes, led by the banks, the likelihood of a short-term reversal grows.
With overbought market conditions in the U.S. and the failure of the Europeans to reach a deal over Greek debt, trader sentiment has turned from bullish to mixed.
Positive earnings and revenue announcements from financials and technology companies have traders and investors bidding shares higher in the second half of the week.
The markets have remained resilient in the face of disappointing revenues from JP Morgan. Another test of resolve awaits traders this week as a number of other financials will be reporting earnings and revenues.
Stocks are rallying on good news and showing strength in the face of negative news as earnings season begins.
A very big game of tug of war is being played right now and the winner so far is the U.S. stock market and its attempt to move higher.
Even if the volume was light, notes Phil Suarez, “a breakout is a breakout.” Find out how high probability traders are positioning themselves in the wake of the market’s big move.
Remember to join Phil Suarez this Tuesday at 1 p.m. Eastern for the latest presentation on trading with 21st century technology with The Machine.
With strength in financials on Thursday and a very positive jobs report Friday morning, traders should be prepared for increased volatility heading into the final trading day of the week.