Good morning,
We’ve had a couple of nice, quiet weeks on the catalyst calendar, but that’s one trend that ends today.
This week is jam-packed with potential market-moving events, including June CPI on Tuesday, PPI on Wednesday, and retail sales on Thursday.
If three top-tier economic reports weren’t enough, Q2 earnings season kicks off with all the big banks, semiconductor reports from ASML and Taiwan Semi, and even a Mag 7 name with Netflix on Thursday.
Charts don’t predict the future or tell us how investors will react to all these events, but the list of positives for bulls continues to build.
Breadth has been on the up-and-up for weeks, but it was the Mag 7 that led last week with a 4% gain following the prior week’s move back above the 200-day moving average.
That helped the S&P 500 chew through short-term resistance, ultimately closing at the week’s highs.
That doesn’t mean there aren’t potential bumps in the road, and we’ll review three this week.
But I think the most important technical story right now is financials, and XLF is the feature of this week’s level to watch. Despite a strong move since the March lows, financials are basically unchanged year-to-date. If bulls can break them out, the cyclical move could just be getting started.
This week’s report will review:
S&P 500 technicals
Oil and interest rates
ETF movers
Tech check
Potential road bumps in the third quarter
and more!
