City A.M. TV: Daily Market Snapshot (video)
Momentum in markets continued to roll over yesterday, with all major US equity indices (and most sectors) closing lower.
The ‘false breakout’ theme that we highlighted in yesterday’s video therefore remains intact. Of note in that respect, and as we show in today’s clip, it’s clear that, as well as weaker momentum, the ‘internals’ of this equity market remain poor. The key question, therefore, is when (and at what level) will the near term outlook for equities begin to improve? In other words, how do we know when the LONG trade offers an attractive risk reward?
Key macro data today includes flash Markit manufacturing and service sector PMIs for February (for France, Germany, the UK, and the US), as well as existing home sales in the US (for January). Events include commentary from the Fed’s Barkin (who is speaking on two panels this afternoon).