Risk holds calmer on the day but keep an eye on the technicals

Risk tones are faring calmer on the day but it is still a bit early to draw much conclusions from that.

In trading yesterday, we saw a turnaround at around European midday before stocks still ended the day more subdued as Russia-Ukraine tensions continue to play out.

US futures are pointing higher on the day with S&P 500 futures up 0.6%, Nasdaq futures up 0.8%, and Dow futures up 0.5%.

That said, be wary of more geopolitical headlines later in the session that could affect the risk mood. If anything else, keep an eye on the technicals after the drop yesterday is bringing US stocks close to its January lows and key support levels:

SPX 23-01

IXIC 23-02

DJIA 23-02

A break of the technical support levels outlined will spell further trouble for equities, considering that we still have to face a backdrop of strong inflation pressures and central bank tightening in the big picture.

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