THE NEW FEAR IS IRAQ AND UKRAINE

For new comers, there is more increased violence in Iraq and further geopolitical and economical problems occurred in Ukraine. The investors are more concerned about that black swans are circling around.

But against all fears the market gained again modestly yesterday after a choppy session. It seems the market still wants to stay in RISK OFF mood and try to ignore the geopolitical issues. Monday the financials and industrials sector stocks are leading the losses.

The close:

• S&P 500 +0.1%
• Dow +0.03%
• Nasdaq +0.2%
• Russell 2000 +0.4%

Russell, as always on green days, over performed the other US benchmark indices. That is a clear and obvious sign of the healthy and bullish momentum might be extended in the following couple of days.

The markets are looking for a direction after the sell-off week and still hesitating about when to kick off a new rally. Recently the S&P 500 is in a pause mode. But, all in all against all war concerns of Iraq and turbulence in Ukraine the indices stay close to the their record levels which is strengthening further the bulls.

From the technical standpoint SP500 last night closed above the key resistance level of 1,936 so now the road is opened up to 1,950. Most probably the index is going to retest that key resistance level today or tomorrow.

The BFM Assets Team.