We have reached the last week of first half of 2009 & end of Q2 2009. And Q2 is heading for one of the best equity performances in many years. Lets see where it stands next week.
The fed announcement last week clarified that "substantial resource slack" will keep inflation at bay. A stronger foreign demand for 2 year note was a good sign and kept the interest rates lower. Fed said they expected that the rates will remain low for a while.
The 30 year mortgage rates edged slightly up to 5.42% from 5.38%. With a lot more US debt issuance to come the potential for rising mortgage still remains.
Checking the technical indicators on the SP500 chart, we are at a point where the market is kind of indecisive and waiting for more info to take a direction. Elliot wave interpretation of sp500 can lead to a downward move of Wave C, but the 200 DMA is providing support to the S&P 500 prices.
Next week's the unemployment report is the biggest one and can provide direction that the market is looking for.
Last week's market Internals:
NYSE, (New Highs - New lows), 5 DMA = 7.8
10 year Treasury yield = 3.52%
Short term bond rate = 2.08%
Volatility Index, VIX = 25.93
Put/Call Ratio, total of equity/Index = 0.81
Bull/Bear Ratio, Investors Intelligence survey = 1.52
US Dollar, 5 DMA = 80.25
Gold, 5 DMA = 91.84
Next Week's economic calendar:
- Consumer Confidence, Case Schiller Home Price Index 6/30
- ISM Index, ADP employment change in 7/1
- Unemployment report, 7/2
.
The fed announcement last week clarified that "substantial resource slack" will keep inflation at bay. A stronger foreign demand for 2 year note was a good sign and kept the interest rates lower. Fed said they expected that the rates will remain low for a while.
The 30 year mortgage rates edged slightly up to 5.42% from 5.38%. With a lot more US debt issuance to come the potential for rising mortgage still remains.
Checking the technical indicators on the SP500 chart, we are at a point where the market is kind of indecisive and waiting for more info to take a direction. Elliot wave interpretation of sp500 can lead to a downward move of Wave C, but the 200 DMA is providing support to the S&P 500 prices.
Next week's the unemployment report is the biggest one and can provide direction that the market is looking for.
Last week's market Internals:
NYSE, (New Highs - New lows), 5 DMA = 7.8
10 year Treasury yield = 3.52%
Short term bond rate = 2.08%
Volatility Index, VIX = 25.93
Put/Call Ratio, total of equity/Index = 0.81
Bull/Bear Ratio, Investors Intelligence survey = 1.52
US Dollar, 5 DMA = 80.25
Gold, 5 DMA = 91.84
Next Week's economic calendar:
- Consumer Confidence, Case Schiller Home Price Index 6/30
- ISM Index, ADP employment change in 7/1
- Unemployment report, 7/2
.
