From Barron's "Stocks Pause After Rally as Economic Outlook Brightens" posted early Tuesday:
Stocks took a breather on Tuesday after advancing in the previous session, buoyed by hopes that the economy will fare better than feared this year.
Futures for the Dow Jones Industrial Average lost 40 points, or 0.1%, after gaining almost 1% on Monday. S&P 500 futures were down 0.1%, and Nasdaq Composite futures fell by the same amount. Japanese stocks on the Nikkei closed 1.5% higher, while the Hang Seng in Hong Kong finished up 1.8%.
In a week in which some 40% of companies on the Dow report earnings, technology stocks have started the strongest. The prospect that the Federal Reserve will slow the pace of interest-rate hikes next week, and possibly stop or reverse them thereafter, is helping the outlook for investors after last year’s rate increases beat down tech shares.
“Winds of optimism are still blowing through financial markets,” said Susannah Streeter, an analyst at Hargreaves Lansdown. “Investors are looking through the storm clouds hovering over the global economy hoping that the downpour won’t completely drown growth.”
Charts: Yahoo!Finance sees a bullish slow-stochastic pattern. Max pain moves up $2 to $137 with a call mountain at $150 (up $5) and put peak at $125.