Another week of bullishness?

International indices are well aligned. Two weeks ago, the majority of indices posted rejection wicks at their support levels. Last week we saw the follow through. The S&P 500 and the Nikkei 225 were the leaders showing stronger bullishness, while the DAX and Hang Seng show more indecision.

This week, earnings will be a big theme for equity investors. Positive earnings could lift the S&P 500 further. Negative interest rates also typically lead to positive stock returns when investors adopt a more risk-taking mentality with “cheap money”.