August 4, 2022
Good morning,
I suspect the moment of truth for our now 3wk old rally is fast approaching. While one can not really look past tomorrow’s July employment report, its importance likely pales in comparison to next week’s inflation numbers (especially the CPI on Wednesday). Somewhat poetically, recall that the current rally started to unfold on last month’s CPI numbers. The S&P 500 Index closed last night at 4155, the last rally high, occurring in early June, is 4180 – the resistance level I’ve waxed on about recently, probably to a fault. Short term, our current rally has just tipped across the overbought threshold for the first time since last October – all making for an interesting setup (to me anyway). Even though it is August when summer doldrums normally prevail, anticipation is building over how the market will behave next week. See you Monday.
Be well,
Mike