Market Notebook

PRICE ACTION:
Equity prices, as measured by ticker SPY, and bond prices, as measured by ticker BND, closed lower on the week.

TECHNICAL ANALYSIS:
SPY’s price action appears to have transitioned from upward trending to consolidation. BND’s price action suggests continuing consolidation. Areas of price consolidation might generally be defined as areas where market participants feel less confident about future performance.

SENTIMENT:
Market participant sentiment appears neutral. Participants are closely watching the Federal Reserve to attempt to determine when rate hikes will pause.

It is interesting to note that large corporates continue to lay off employees and “tighten their belts.” It is uncertain as to whether the above are proactive measures or reactions to decreasing sales and higher input prices. Probably both.

ECONOMY AND FUNDAMENTALS:
Economic indicators within the Market Notebook remain mixed. Real economic activity will likely slow over the next few months as the Federal Reserve works to contain inflationary pressures.

Jobless claims are to be watched as a key indicator of a potential recession. Thus far, jobless claims are not suggesting a recession is imminent.

All the best during the week ahead!

Disclaimer: Nothing in this discussion should be considered investment advice. The content of this discussion is strictly my personal opinion and subject to change at a moment’s notice. Investment advice can only be provided to you by your investment professional and not by a general market discussion such as this one. If you wish to speak with an investment advisor, contact us. We can probably help.