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Stocks Improve Off Mixed Start

EQUITIES
  • European cash markets started off mixed, with French and German indices opening lower but swiftly recovering to trade inline with yesterday's close after an hour or two. Europe's energy and utilities sectors are leading the way higher, while consumer staples and healthcare add a headwind.
  • US futures are trading higher, with the e-mini S&P higher by 15 points or so. S&P E-minis recovered last week and price action on Oct 14 resulted in a move above the 50-day EMA - at 4393.95 today. A clear breach of the average has strengthened the case for bulls and this week's positive price action reinforces current short-term conditions. 4472.00, Oct 7 high has been breached opening 4539.50, the Sep 3 high and bull trigger.
  • VIX futures trade under pressure, with the contract now in close proximity to the mid-June lows of 16.05 points and post-pandemic lows.

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