June 6, 2022
Good morning,
Futures are up 1% overnight leading into this week’s market open. Some good news out of China would seem to be the explanation for the market’s overnight strength but the China headlines are thin, I suspect it’s something else – volatility. There is very little in the way of major data releases this week until Friday’s CPI report, and the FOMC will be clammed-up thanks to the pre-meeting blackout period. For a week of little data, we might normally expect a week of low volume – a summer trading affair. However, there is nothing normal about the current environment – it is extremely noisy, making the message from the market that much tougher to discern.
The S&P 500 was off -1.2% last week following the big move up the week before. I would not say the rally was derailed but nor did it extend. We’ll just have to wait for a clearer message from this noisy market where 1% moves seem hourly.
Be well,
Mike