Stock futures were modestly lower to start the week, falling over .25% overnight. This morning those losses have turned into gains with futures up .1%.
The market remains resilient. Last weeks constant threats of downside was met with a "not today" , type reversal. Ultimately on Thursday those responsible for the early morning weakness had been dealt with and the market embarked on a sizable rally.
The fact remains that the dips continue to get bought as evidence by the large wicks on the daily chart.
Morning weakness is almost always followed by a modest recovery.
Small caps looked on the cusp of a sharp decline, much as they were heading into the election last year. However late last week momentum has turned and small caps are back in the driver seat again.
Small caps have been referred to, at times, as the canary in the coal mine. The recent reversal is the canary in the bird food aisle. Each of the small cap reversals have resulted in strong short to medium term gains and ultimately new record highs.
and finally with the opening bell minutes away, lets look at what the market has done for the rest of the year over the last five years.
Flat to higher. More the of the same.
See you in the chat room.