It was a mixed week for US equity indexes, with net weekly changes ranging from +0.4% (SPX, Nasdaq comp'), +0.2% (Dow), -0.2% (NYSE comp'), to -1.3% (Transports).
Lets take our regular look at five of the main US indexes (monthly candle charts)...
sp'500
Nasdaq comp'
Dow
NYSE comp'
Trans
–
Summary
Three US equity indexes were net lower for the week, with two net higher.
The SPX and Nasdaq comp' saw moderate gains, whilst the Transports was sig' lower.
The SPX and Nasdaq comp' broke new historic highs.
More broadly, all five US equity indexes are holding above their respective monthly 10MA, and I thus see the m/t trend as bullish.
–
Looking ahead
A busy week is ahead, with the latest CPI data, and the formal start of Q2 earnings season. The CEO of Print Central, Powell will issue more 'Transitory' talk on both Wed' and Thurs'.
Earnings:
M -
T - JPM, GS, PEP, FAST, CAG
W - BAC, WFC, C, BLK, PNC, DAL
T - TSM, UNH, MS, USB, BNY, AOUT, AA
F - KSU, SCHW, ERIC
-
Econ-data/events
M -
T - CPI, US T-budget
W - PPI, EIA Pet', Fed beige book, *Powell, due 12pm
T - Weekly jobs, Import/export prices, Phil' fed, Empire state', Indust' prod', Powell, due 9.30am
F - Retail sales, consumer sent', busi' invent, *OPEX*
-
Final note
Price action from late Thursday morning to late Friday, was yet another reminder of underlying upward pressure. Literally, all the bears could manage was three trading hours lower, before 'normal service' resumed.
Next Tuesday will see the latest CPI data, and that will likely be a market moving event. Will the mainstream cheerleaders deem the number 'Goldilocks', 'cooler than expected' or 'too hot'? As is often the case, even if I knew the number in advance, how the market views it... is a very difficult thing to call.
In any case, we know the fed will be playing the 'Transitory' card for some months to come. Things arguably only become problematic for Print Central, once core CPI is >7%.
Whilst the market looks vulnerable to another swing lower - if only to the sp'4250/40s, I still don't expect a major correction until after Labor day. After all, Q2 earnings should come in broadly fine, and there is an ongoing re-opening across much of the world.
For more charts, and whatever else I want to post about - outside the control of the mainstream media hacks, you
know where to find me in... the twilight zone.
If you value my work on Blogger, Twitter, and want more of the
same, subscribe to my intraday service! For details and the latest
offers, see: https://www.tradingsunset.com
Have
a good weekend
--
*the next post on this page will likely appear 5pm EST on Monday.
