Recap
New 52-Week Highs vs New 52-Week Lows
NYSE New 52-Week Highs: 55 vs New 52-Week Lows: 36
Nasdaq New 52-Week Highs: 63 vs New 52-Week Lows: 113
McClellan Oscillator
New Highs - New Lows
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Today
Powell is likely correct in just holding rates and not signaling for any further rate hikes. He also pushed back on the Stagflation narrative.
This shows a trend in the right direction to get inflation back towards 2% but notice the number of job openings is still high compared to pre-pandemic.
Jobs market is quite healthy
Wage increases continue to outpace inflation (which is good for income growth but also means it will take longer to get back to 2% inflation target).
Still healthy jobs growth when you look at the trend
However, ECI to Unit Labor costs rising is not a good sign.
Central Banks are starting to cut rates which supports global economic growth—Eurozone countries just came out of recession.
Forecast
Although the Fed signal they won’t hike rates, it is interesting that Utilities performed the best yesterday. But the flows are interesting and heed caution, please review below. The key again is if SPX can hold 5000 and reclaim 5100 LIS (line in the sand) and IWM 200 level.
Powell FOMC Meeting Insights (Dovish still)
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