U.S. equity markets see-sawed most of the trading session before settling higher. After the markets closed, Alcoa reported a quarterly profit in line with pre-report expectations.
September E-mini S&P 500 futures found support early in the session at a 50% price at 1066.00. Holding this level is the key to further upside action to perhaps 1081.00. A break through 1066.00 is likely to trigger sell-stops and possible cause an acceleration to the downside.
Early weakness in the stock market helped boost September Treasury Bonds and Treasury Notes, but investor demand for higher yields and a firming equity market weighted on both markets into the close. Although the main trend is up, the charts indicate a correction to 125’25 is likely over the near-term.