Running of the Bulls
Today’s Spotlight Market
The S&P 500 closed at an all-time high of 2130 just a little over a year ago on May 21, 2015. Since then, volatility has dominated the market with falling commodity prices, slower growth in China, Eurozone negations with Greece, a referendum on the UK remaining in the European Union, and the start of the US Presidential election cycle all dominating the news.
Fundamentals
The US equity markets have been on a bullish run as of late, with the S&P 500 trading within 2% of the all-time high reached last year. 1st quarter GDP in the US was revised upward to .8% from .5%. The forecast for a Fed rate hike has increased drastically recently from almost none to about 30%. Fed Chair Janet Yellen has two upcoming speeches, today at Harvard University and June 6th at the World Affairs Council in Philadelphia, before the next Fed meeting on June 14th and 15th. Fed watchers will be keeping a close eye on her words to see if there is any hint as to Dr. Yellen?s position on a rate hike. Although it has been a slow week for news with the upcoming Memorial Day holiday in the US and a bank holiday on Monday for the UK, traders will want to also keep an eye on the upcoming non-farm payrolls announcement on Friday, June 3.
Technical Notes? -? View Today’s Chart
Turning to the 3-month continuation chart, there are several bullish technical signs to note. The support level of 2025 has been tested several times and held. The 20- and 50-day Simple Moving Averages (SMA) have converged, with the 20-day SMA looking to cross above the 50-day SMA. 14-day Relative Strength Index (RSI) is a neutral to bullish 61.40, while 2100 is the point of next resistance.
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