Today's Action Will Come Down to Volume. Here's Why

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Our View

Friday was not the day I thought it would be. 

Markets struggled all day as the red-hot S&P and Nasdaq took a rest. Friday's mixed bag saw the Dow Jones futures fall 379 points or -0.94% — although it had its best week since mid-December — while the late-day drop pushed the ES into the red, down 22.75 points or -0.24% on the day. The NQ closed up 0.01% and at a new record high. 

Two Fridays ago, the ES and NQ were trading lower but the markets reversed to new highs pushed by hopes that the era of high borrowing costs is coming to an end. That was reiterated by Federal Reserve Chair Jerome Powell last week, indicating that the central bank was still on pace to trim interest rates three times this year.

The way I see it, the jury is not out yet on the rate cuts, but the data will dictate that.