THE MACRO SETUP OVERVIEW:
• Rising Delta cases have had little impact on the stock market so far
• Smaller cap stocks may be signaling a possible wider correction
• Gold continues to show weak form as it attempts to recover from last week’s flash crash
WILL GEOPOLITICAL TENSIONS HAVE AN IMPACT ON THE MARKET?
In this week’s edition of the Macro Setup, featuring Guy Adami and Dan Nathan, we discussed the impact of rising geopolitical tensions and new Covid cases across various asset classes.
US equity markets continue to push higher, with their 200-day moving averages trailing behind. The breadth in the market has shown some divergence between the different indices, with only 48% of the members in the NASDAQ above their 200d MA, compared to 84% for the S&P 500, as highlighted in a tweet by Liz Ann Sonders. That said, the NASDAQ is only trailing the S&P…