Equities Climb on Positive Technicals with Investors Embracing the Dip📈

On the equity side, a series of positive technicals (SPX regained its 200-day MA) and rebounds off oversold readings are breathing life into the stock rally, with investors likely in a "buy-the-dip" mode with a lack of negative catalysts in the horizon. With the Fed uncertainty in decline at least until early 2023, supply refunding concerns pushed out by at least another quarter, company earnings coming in 'OK' for the most part, and a lack of negative contagion from the on-going geopolitical conflicts (so far), risk markets are likely to stay on the strong side in the immediate future. Furthermore, while weakening consumer demand is starting to surface from the likes of poor credit card spending data, as well as from management guidance, investors are likely to overlook them in the meantime given the positive impulse from expectations of Fed eases in the coming year. A boring market might be a good market in the meantime.

#BondSupply #CorporateEarnings #GeopoliticalConflicts #ConsumerDemand #Macro