Equity futures are trading lower Thursday morning, extending Wednesday’s hesitation following the S&P and Nasdaq breakouts. The weaker opening indications keep the potential backtest in focus, while the Dow, Russell, and European indices remain vulnerable as they seek their DCLs.
Oil is strengthening, Treasury yields remain elevated, and the Dollar continues to firm. Gold is stabilizing following Wednesday’s decline, but its DCL remains unconfirmed. These conditions continue to challenge equities, particularly the weaker indices.
What matters now: Whether the S&P and Nasdaq hold their breakout support while the lagging indices complete their declines. A VIX rejection near resistance would support that possibility. For now, the divergence remains unresolved, and Thursday’s price behavior will determine whether the backtest holds or weakness spreads.
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