Hello Everyone,
The SPX finally got a relief rally last week after declining for seven consecutive weeks albeit on weak volume. The backdrop of oversold readings and very bearish sentiment was supportive of a relief bounce. Currently, I'm viewing the range on the SPX between 3800-4300 with initial support on ES 4165 then 4130 with resistance 4200ish with a bigger level overhead at 4255-65 (backtest) . Today ES bounced off that initial support and moved up to test 4200ish before settling at 4177. The next FED meeting is on June 15th so with QT scheduled to begin next week - so I'm interested to see what transpires after the next FED meeting - nothing much has changed with the current economic backdrop. Food and energy inflation has remained very sticky and is definitely taxing consumers (credit card debt expanded rapidly on the last monthly report). The US economy is heavily skewed to the consumer and the current backdrop is not favorable for discretionary spending.
Lastly, I want to to a moment to remember all those who made the ultimate sacrifice for our country. We salute you.
Please take a moment to look at the trade ideas.
