03 August 2016

SP 500 and NDX Futures Daily Charts - The Calm Before the Storm

Stocks are continuing to move in a fairly tight trading range as you can best see on the SP 500 futures chart below.

I believe that it has been 18 trading days since we have seen more than a one percent closing move in stocks.

Some suggest that this is due to 'tinkering' in the markets by central banks since the Brexit announcement.

Speaking of Brexit, in addition to the non-farm payrolls report on Friday, the markets, especially the forex markets, will be looking at the policy announcement this week from the Bank of England.

Still waters typically run deep, but this market is shallow. So I expect rougher waters ahead.

Have a pleasant evening.