November 24, 2014- Stocks Edge Higher Cautiously on China Optimism Despite Overbought Conditions

Trading in the U.S. index futures suggests that Wall Street stocks may open Monday's session slightly higher, as expectations concerning central bank support gains ground. The optimism is despite the overbought levels at which the major averages trade. Earlier in the day, Asian stocks closed mostly higher, led by China and Hong Kong, following a surprise interest rate announced by China's central bank late Friday last week. The European markets are also rising, extending Friday's sharp rally. The domestic markets may react to a private service sector survey due shortly after the markets open and M&A news flow if any. The Dow futures are rising 37 points, the S&P 500 futures are adding 4.25 points and the Nasdaq 100 futures are moving up 10.75 points. U.S. stocks advanced in the week ended November 21st, as positive domestic economic data and unexpected interest rate reduction announced by the People's Bank of China helped the Dow Industrials and the S&P 500 Index close the week at fresh highs.