US equity futures are indicating a higher open this morning ahead of a light economic calendar. Overnight, China was closed for the New Year’s holiday and Europe is firmly in the green. While futures are higher, tech is a notable laggard following poorly received results from Alphabet (GOOGL) and lowered guidance from Seagate (STX). Read all about it in today’s Bespoke Morning Lineup.
After a slow start to the week Monday, investors once again started to buy stocks between the opening and closing bell as the S&P 500 finished the day up nearly 0.7% while the Nasdaq rose over a full percentage point. With the steady gains we have been seeing lately, the percentage of stocks in the S&P 500 trading at overbought levels continues to tick higher. As of yesterday’s close, a net of 51.4% of the stocks in the S&P 500 are trading at overbought levels (>1 standard deviation above 50-DMA), and that’s the highest reading since late January 2018 when the percentage reached 63.4%. Now, that was high!
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