Market Condition Analysis
I am not sure why the market decided to rally today after Fed Chair Yellen gave a speech which gave no indication of an interest rate hike at its next meeting. You see, despite last Friday’s horrific employment report, I seriously doubt the FOMC would have taken any action even if the report has been surprisingly positive. The “Brexit” referendum is coming up for vote one week after the Fed meets and this is a risk it cannot ignore. Besides that, it simply wants to see more consistency in the positive data to confirm that the economy is on solid footing.
Meanwhile, the benchmark S&P 500 (SPY) is right up against key resistance barriers once again. Anticipate more churning at these levels or consolidation at best until we get closer to the FOMC monetary policy release date. No further comments…
(See asset class performance table below)
Market Moving Events
ETF Capital Markets Performance Summary