S&P 500 E-mini futures are currently holding their smallest daily range since January 23, when all was still wonderful with the world.
The appearance of calm will provide some confidence to European traders but the underlying drivers of equity weakness -- excess bullishness amid a squeeze higher in Treasury yields -- haven't gone away.
It's also early in the global session and, almost every day last week, the real volatility happened in the U.S. session.
With Treasury futures falling again today (higher yields), we can expect equities to trade poorly later on.
With a cash flow analysis compared to the S & P 500, it is noticed that although the index seems to have turned and the selloff is over, net cash flows remain at a record low. This suggests that the sentiment around the traders is still negative and will weigh on the stock.
Source: Bloomberg Pro Terminal
Jr Trader Alexander Kumanov
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