No rocking the boat
|S&P 500 defended my 3,955 level by stopping full 10 pts above it, and turning up swiftly. The rise was accompanied by good breadth, and ducks lined in a row when it comes to former laggards (tech), high betas incl. financials and just broadly speaking value stocks, and smallcaps with the dollar remaining tame. Bonds also didn‘t present any red flags.
And with TSLA earnings really good yesterday, then GDP not decelerating nearly as fast enough as anticipated, PCE prices advancing and GDP deflator coming above expectations, the table is set for the Fed to miss a good tightening opportunity next week as durable goods data also attests to (which the markets would just love to see short-term) – compare against the following summary dating back to before today‘s data batch became available.
Keep enjoying the lively Twitter feed serving you all already in, which comes on top of getting the key daily analytics right into your mailbox. Plenty gets addressed there (or on Telegram if you prefer), but the analyses (whether short or long format, depending on market action) over email are the bedrock. So, make sure you‘re signed up for the free newsletter and that you have my Twitter profile open with notifications on so as not to miss a thing, and to benefit from extra intraday calls.
Let‘s move right into the charts.
S&P 500 and Nasdaq outlook
S&P 500 moved out of the hot water, and the bear market rally can continue. 4,040 is to get in rear view mirror on today‘s close, and I would be eyeing the 4,080 – 4,085 area as the nearest solid resistance target (ultimately followed by my 4,130 of September CPI fame).
Credit markets
No warning signs here, and the still reasonably fine real economy data of today, should help bonds to clinch a risk-on close. HYG is to outperform TLT today – and the most sensitive real assets will like it!
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.