Friday 20 September
Good Morning,
The S&P more or less flatlined yesterday after a huge gap up of almost 100 points on Wednesday night. According to a report on CNBC foreign sovereign wealth funds including the Saudis took a large position in U.S. equities after Powell announced the first rate cut on Wednesday.
On the whole I donβt expect a large pullback into the election, previous support at 5400 would be a logical target. The market is extremely bullish on these cuts and fund managers may not trim as much as usual in the October period. In relation to next week which is statistically the worst week of the year it may not play out as itβs very well telegraphed but we will see next week, we could see the weakness in October instead.
In the meantime today is quad witching day so any normal market functioning is irrelevant as there are $5 trillion in options expiring.
We saw some large dark pool transactions at the close last night.