It seems that the optimists in the markets are rallying and so seem to have taken the technical helm at the moment.
The good news – corporate reports are looking attractive compared to forecasts with more than a few market heavyweights topping views.
The bad news – today’s results are finding it harder to impress or influence the broader market with any strong conviction.
On the economic front, a trio of economic reports came in mostly better-than-expected and has provided some anecdotal support for optimistic market trading, though this failed to draw any real reaction from market participants.
From Germany and The Eurozone ZEW Economic Sentiment surveys came up short of views. Australia’s Reserve Bank’s minutes noted “China may not be slowing much further, although the outlook remained uncertain”. If that sounds unsatisfying, you’re with me on that – my opinion.
And finally, the VIX (commonly called the fear index) is down 4.75% near 16.25%. The sentiment gauge is marginally below its one month lows and roughly 6% below its 10 Day Simple Moving Average.
Overall, the price action creates an environment (at least in the short-term), which looks conducive to market optimism. Investors should remain wary of any potential complacency.
welshmoneywiz 