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Equities Roundup: Marking Session Highs, Bank Earnings Kick Off

US STOCKS
  • US stocks are quietly climbing off midmorning lows in early afternoon trade: Dow Industrials (33,742.39 +157.38) and SPX Eminis (4147.50 +11.25) outperforming Nasdaq (12,067.28 -17.06) at the moment.
  • No particular headline driver for the support, but position squaring ahead of Wednesday's key data risk, March CPI and FOMC minutes a likely factor.
  • Energy, Industrials and Financial sectors are outperforming. Regarding the latter, JPM, Citi, PNC and possibly Wells Fargo are expected to announce earnings this week). Laggers: Communication Services and Information Technology and Consumer Discretionary sectors are underperforming.
  • From a technical perspective, S&P E-minis remain in an uptrend and the contract is trading closer to its early April highs. Price has recently breached resistance at 4119.50, Mar 6 high, reinforcing a bullish theme.
  • The move higher has also resulted in a break of 4148.48, 76.4% of the Feb 2 - Mar 13 downleg. This signals scope for an extension to 4205.50, the Feb 16 high ahead of 4244.00, the Feb 2 high and a key M/T resistance. Firm support lies at 4050.52, the 50-day EMA.

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