European equities saw early losses turn to gains before the optimism is slowly fading going into North American trading
The DAX turned around near 1% losses to 1% gains, helped out by the ECB ensuring that there is sufficient liquidity in the market - to non-euro area central banks that is - but gains are slowly fading now as investors remain on edge amid recent virus developments.
In that lieu, the situation in the US will once again be a key focus point in trading today and the market is understandably still reserving some caution ahead of the latest updates from US states on the case counts and hospitalisations today.
US futures also managed to turn around a little over 1% losses to flat levels before slipping a little more on the session currently. E-minis are down by 0.3% now:
Overall, I'd argue that the risk mood remains on edge and that virus headlines, and perhaps even fresh measures undertaken to curb the spread (if we do see them), are likely to still dominate the headlines ahead of the weekend.
The latest resurgence in cases across the US won't change trajectory unless action is taken and that will be a key consideration in the short-term when viewing risk sentiment:
Today, it will be a test of the S&P 500 to see if it can keep above the 200-day moving average and if buyers can even keep a positive day, that would be a decent showing.
That said, the same resistance levels from last week are still at play - 3,153-55 for the S&P 500 and 200-day moving average for the Dow - so just be mindful that we are still largely playing within the same technical region as we look towards the weekend.
