The Closing Look
The S&P 500 traded at the highest level since July before it backed off and closed in the middle/to lower half of its daily range. Buyers showed up and sent oil, transportation and housing stocks higher helping them break above near term areas of resistance. Economic data was relatively light. First quarter productivity (which measures hourly output per worker) slid to an annualized rate of 0.6%, lower than the 1.0% rate reported last month. Unit labor costs which measures the price of labor per single unit of output, rose at an upwardly revised 4.5% rate.
Gary’s Thoughts: Off of a change of central bank stance, the dollar continues to weaken…leading to a rise n commodities. But what happens if Yellen wakes up next week and raises rates? Dollar soars, commodities hit and markets in trouble. Again, markets continue to be held hostage by one woman and a few others running other central banks. The decisions of a few moving markets. Markets are supposed to be about the fear and greed of investors and speculators at a time and at a price. Not any more.
The
Dollar ; ( shekel ) is way way down,,…… fast !
It’s likely to rebound.
If the shekel rebounds, that will likely pull back the market and commodities….. Butt.. the shekel has the 50 day MA above, and the market has the 50 d MA below; ……. soooooo,, any pull back based upon a rally in the shekel, and an over bought market will likely end with a pull back of the market to the rising 50 day MA.
Equals a base.
After that pull back; will we rally and break out to new highs, or will we begin to break down again ?
The answer to that depends upon what happens to the dollar/shekel when/if it rallies to test the 50 day MA….
Either way, I am looking at a little pull back in the market to the 50 day MA ,, soon !