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S&P 500 breadth again

Having talked breadth in details last couple of days, S&P 500 was ready to consolidate following 100% retracement of NVDA earnings jump. 5,895 provided decent support premarket, and following the opening bell, stocks moved to the upside to 5,915 (broken support during post-NVDA consolidation). Ever since the not admirable TACO moniker, appeared, stocks have reacted with way less concern than was the case in the early stages of liberation, and now we have the tariff legality court battles to grapple with too – followed by late Friday 50% tariff on steel and aluminum announcement and Lutnick continuing with Sunday statements (Sunday bearish gap a certainty).

Clearly, Friday wasn‘t about core PCE, it was so clear why I didn‘t talk really inflation in the earlier articles. FOMC minutes Wednesday revealed nothing groundbreaking, the Fed‘s catious approach talking up uncertainty, is still there. So, expect no rate cuts indication being brought closer – it‘s obvious the real economy isn‘t facing (immediate) recession prospects (look at XLY, XRT – bifurcation continues e.g. WMT, DG, TGT), and productivity will get a boost in the quarters ahead (earnings aren‘t falling off a cliff, market is garden variety selective, rotating, and as I was saying throughout this eventful week, dips of this highly technical and trappy trading are being bought – look no further than Friday‘s V-shaped recovery back above 5,895).

Your extensive Saturday video captures the snapshot with plenty of sectoral and real asset perspectives, so make sure to review it.

Author

Monica Kingsley

Monica Kingsley

Monicakingsley

Monica Kingsley is a trader and financial analyst serving countless investors and traders since Feb 2020.

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