Market Notebook

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

TECHNICAL ANALYSIS:
After retracement, SPY price continued above recent resistance, suggesting the possible establishment of an upward trend. BND price action is suggestive of the establishment of a downward trend.

SENTIMENT:
Price action suggests market participants are not concerned about a U.S. debt default. Furthermore, sentiment suggests market participants expect the Federal Reserve to pause rate hikes soon.

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 indicative of a recession.

Despite what one hears in the financial news media, it is possible that the Federal Reserve has thus far played its cards precisely right and is getting the slowdown in inflation it wanted without a sharp negative break in the U.S. economy.

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.