WEEKEND ROUNDUP: Setup into Monday's Open

This week in the equity markets saw mega-cap tech continue to drive gains. The QQQ ETF closed at 731.07, up 1.41% for the week, propelled by rallying technology giants such as AMD, Intel, and NVIDIA, following Super Micro's impressive performance. The artificial intelligence trade remains robust, as bolstered enthusiasm overshadowed Apple's recent geopolitical hiccup, where Apple (AAPL) received a U.S. warning against purchasing Chinese memory chips. Meanwhile, broader market sentiment improved with SPY closing at 776.34, attaining its highest closure within the week range of 769.2 to 779.37, signaling resilience.

On the macroeconomic front, inflation expectations remain center stage heading into next week. The VIX dropped significantly, closing at 14.25, down 7.83% as volatility eased on stronger economic data and favorable corporate earnings. While initial jobless claims continued their moderate trend, investors are gearing up for upcoming economic indicators, with CPI and PPI releases likely shaping investor sentiment further. In geopolitics, market narratives were influenced by comments from Bill Ackman on strategic stock picks like S&P Global, adding layers to investment strategies amid shifting policy landscapes.

As we move into the upcoming week, there is a palpable shift towards a "risk-on" sentiment driven by AI and tech optimism, as reflected in the strong performance of leading tech stocks and positive earnings. The subdued VIX underscores a decrease in immediate market fears, encouraging a focus on nuanced macroeconomic data that might redefine inflationary narratives.

While the coming week is light on major earnings, notable trends and sector rotations could still affect:

- NVIDIA (NVDA): Watch for any releases or analyst updates in a post-rally environment. - No major earnings are scheduled this week, indicating a pause in public company financial disclosures.

- Monday: NY Fed Survey of Consumer Expectations - Insight into inflation and spending expectations. - Wednesday: CPI Inflation Print + Real Earnings - A pivotal data point for gauging inflation trajectory. - Thursday: Initial Jobless Claims + PPI - Key for understanding labor market health and producer prices. - Friday: Consumer Sentiment + Industrial Production - Provides a consumer-side view of economic momentum.

- SPY: Current resistance is at 779.37, with support around 769.2. Tracking above 779.37 could signal continuation of the bullish trend, while slipping below 769.2 might question recent strength. - QQQ: Resistance stands strong at 734.39 with support at 715.5. Breaking through resistance could reinforce tech optimism. - IWM: With a week high close, any move past 305.18 could sustain the rally, while presence above 299.08 will be crucial to maintain upward momentum.

As we await the Sunday evening futures open, optimism driven by tech and a robust economic environment defines the current landscape, likely setting the tone for next week's market dynamics.