S&P 500 is above its 200-day moving average = Bullish
S&P 500 is slightly above its 50-day moving average = Neutral
S&P 500 one-month trend = Multiple Short-term Trend Reversals (Inconclusive)
RSI: (S&P 500) @57.65 = Neutral
MACD: Below zero line but slightly above signal line (Neutral)
Daily Intraday Volatility: 15.28 (Subdued). Volatility is still on the low side.
Comment: The Fed has their two-day FOMC meeting on Tuesday and Wednesday, followed by a press conference on Wednesday afternoon. The consensus is there will be NO rate cut at this meeting, but Powell’s words will be closely scrutinized. No one can predict what Powell is going to say, or how the market will react. It really could go either way, so expect volatility during the week, and especially after he speaks.
My prediction: He won’t cut rates but he will say that he will in the future depending on market conditions.
Meanwhile, the best analysis I’ve seen on how to manage the current market environment comes from a piece that Lance Roberts wrote: https://bit.ly/2WIp3cq
Bottom line: It is going to be a tricky week for traders and investors, so stay alert, or wait until the dust clears. Wall Street really wants Powell to cut rates, and if he doesn’t deliver now or in the future, Wall Street won’t be pleased.
For daily results of multiple indicators, read Yardeni Research: https://goo.gl/eT3fzA
For insightful analysis of the stock market, read Lance Roberts:www.realinvestmentadvice.com
For insightful analysis of economic conditions, read Wolf Richter:www.wolfstreet.com