The S&P 500 recorded a key reversal on May 1, and the end of the tariff truce ensured follow-through selling. With today's early losses, it is off nearly 3.5% this month. In my brief chat with Stuart Varney at Fox Business, I suggest that the stretched technical condition left the market vulnerable to a "buy in May and go away" scenario. There was some suggestion that comments by Atlanta's Fed's Bostic playing down a rate cut may have spurred some losses. While this is possible, I see the market as rejecting other signals by Fed officials that it will be patient and in a wait-and-see mode. Despite attempts by some journalists and analysts to find differences, Fed officials have been singing from the same hymn book. Perhaps what as unusual (in the modern sense)
Marc Chandler considers the following as important: $SPX, Cool Video
This could be interesting, too:
Marc Chandler writes USD Resilience in the Face of Aggressive Fed Easing Expectations
[email protected] (TrueEconomics) writes 14/6/19: Rising Concentration Risk in S&P500 Earnings and Revenues
Marc Chandler writes A Look at the Charts
The target I suggested for the S&P 500 is 2700-2720, and knowing the Varney watches the Dow Industrials, a similar objective is near 24700-25000.