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Equity Roundup: Holding Modest Gains

US STOCKS
Markets remain sensitive to headline risk tied to Russia/Ukraine tension. After falling more than 2% Thu, SPX eminis bounced early overnight on reports US Sec of State Blinken will meet w/ Russian foreign minister Lavrov next week (providing Ukraine isn't invaded) in ongoing attempts to find diplomatic solution to tensions.
Keeping markets on edge with potential for accidents: Combined Russia/Belarus life fire exercises expected to continue into Saturday.
  • Inside range for SPX at the moment, trading firmer and above first support of 4354.00 Low Feb 14; upside/first resistance: 4586.00 High Feb 2 and a near-term bull trigger.
  • SPX eminis trading +10.0 points (0.01%) at 4384.5; Dow Industrials +12.1 points (0.04%) at 34328.87, NASDAQ -40 points (-0.3%) at 13679.73.
  • SPX leading sectors:
    • Communication Services +0.68%
    • Real Estate: +0.59%
    • Financial +0.49%
  • Technicals: Markets partially reversed the Tuesday recovery into the Thursday close, reinforcing the fragile nature of equity sentiment. This keeps the outlook pointed lower for now, with downside impetus strengthened by the failure of the contract to hold above the 50-day EMA - at 4549.15.
    • This average represents a firm resistance and a clear break would suggest scope for a stronger rally towards 4671.75 initially, Jan 18 high. Recent bearish candle patterns have exposed 4212.75 the key downside target.

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