S&P 500 IS NOW rallying above its 3692 support, earnings for banks have been solid as the tech sector is up next. All eyes on the NASDAQ and 10 YR yield. Geopolitical: Ukraine.

(Chart 1)

(Chart 2)

Earnings have come in solid for Wall Street, with banks and investment banks and some consumer and industry sectors beating estimates (somewhat) as higher interest rate and profit margins have assisted with higher earnings, which should be associated when factoring in higher interest rates/inflationary environments.  So it is no surprise.   Although it should end up as an uneven array with the Tech sector about to release  it 3rd quarter earnings, to watch as a bellwether will be Texas Instruments Incorporated (NASDAQ:TXN).  

Chart 1 above is the S&P 500 futures, rallying off its Oct 22nd low of 3502, settling back into the trading range support of 3692.

Chart 2 shows the very narrow hedge in lieu of the 10 YR yield inversion and stock sell offs.  Note the Tuesday 18th Oct selling pressure on equities when the 10 YR hit 4.04%, the 10 YR is currently 4.01% hence speculation gaining momentum on money moving back into stocks. 

In summary, pressure on equites will be persistent with inflation and interest rate expectations.

The other concern, is the war in Ukraine, where Russia may deliver and extreme military response to Ukraine as it advances close to its boarders.