The markets turned red after Fed president Neel Kashkari says that Americans have such a ‘visceral’ hatred of inflation that they’d rather have a recession than rising prices. This is the second time Kashkari has made comments that have caused a drop across the markets. However, this week the key events are focused on employment, which has been one of the bullish economic variables. My perspective is that employment is bullish regardless of whether the numbers beat or miss expectations. The Fed prefers employment to miss expectations, and have said that they will cut rates sooner if unemployment starts to rise. At the same time, if the employment numbers remain strong then it is a good sign of a healthy economy. So I see this week’s employment data as a win-win scenario regardless of the outcome.
Over the past two days SPY and QQQ had strong bullish wicks pushing the price up. SPY has managed to flip the green trendline from resistance into support, and is attempting to rally to new all time highs above the white trendline. QQQ is showing relatively more strength, and is attempting to form a bullish breakout above the red resistance line. I think the S&P and NASDAQ can rally for another 2 months before a potential downswing or crash around August.
ChartChamp socials: https://linktr.ee/realchartchamp
