S&P 500 futures are up by 0.4% on the day
And the just released better-than-expected Q3 earnings from Morgan Stanley (EPS: $1.17 vs $1.00 estimated) is only going to help with that. The steadiness so far seen in E-minis is helping to reverberate a sense of calm across markets with the yen still on the back foot in currencies trading while Treasury yields are a little higher on the day.
As a result, European and Asian equities have benefited for the most part from the sentiment here as well. This comes despite the fact that the S&P 500 closed yesterday below the 200-day MA once again - the second time in three trading days:
Since January 2016, the index has yet to see two consecutive daily closes below the 200-day MA and the early signs today suggests that we won't be seeing one as well. However, let's not get too carried away and let's see how the cash equity market performs later in the day.
All it takes is a small crack in the facade and things will start unraveling and when they do, it could still get very ugly for markets and risk today. The last time the S&P 500 posted two consecutive daily closes below the 200-day MA, it precipitated in a 12% decline over the course of two weeks.
A similar decline from current levels would see price fall to around 2,420 - a level last seen in August 2017.
