The market closed red for the second week in a row as traders took profits on persistant inflation and fears that the Fed may not cut as soon as expected. Mag 7 stock weakened and ADBE dropped 13% on Friday. The Russel fell by 2% and OIL stengthened. This week the market look ahead to the FOMC rate decision on Wed.
SUMMARY
SUMMARY
- ES had a weekly loss of 0.25% after trading in a wide range of 141 pts.
- ES closed red for the second week in a row.
- R1 = LTF 1.618 Fib X (5211)
- R2 = 9 ema (5196)
- S1 = 21 ema (5160)
- S2 = May 5th Low (5126)
- Bias remains long but choppiness at ATH increases odds of a near term pull back.
- Break below upward trendline would signal potential trend change.
- Potential risk-off and inflationary shift as XLP, XLE & XLB are showing near term strength.
- Mag 7 are showing weakness. ADBE dropped 13% on Friday
- FOMC rate decision on Wed
- Inflation remains persistant. XLE up 3.84 % last week.
- Growth and small caps still under pressure.
- RSI 47.52 | VIX at 14.42 | 10 year 4.31%
