Following Friday’s absolutely grotesque and soul-crushing mega-rally (since, as we all know, a 0.25% reduction in interest rates will solve ALL our problems instantly in a few weeks), it’s encouraging to see blood on the screen this morning. The /NQ has been slowly bleeding off from its Friday’s highs.
Although, to be fair, most of the this-will-fix-everything rally is intact from Friday morning, as the /ES shows. Still, I’ll gladly take it, since futures were actually UP at some points on Sunday.
One very slightly curious thing happening is with the /RTY, which has a special relationship with the horizontal shown below. In December, we went crashing below this line, and for nine months that horizontal was ironclad resistance. That is, until Friday. And yet, as of now, we’re sneaking below it once more. Hunh.
Oh, and it’s also nice to see Bitcoin getting clobbered. Unlike equities, Bitcoin is WAY BELOW where it was on Friday. Crypto enjoyed the same mega-rally as equities did, but those gains have been laid waste and we’re a good $14,000 below lifetime highs.
The thing is, there were two events looking. One is behind us already, in the form of Powell’s final Jackson Cornhole address. The second, happening in a little over 50 hours, is the NVDA earnings report. That’s going to be a make-or-break moment for the markets, as it is charged with justifying this kind of valuation on the most expensive company on the planet.
