NMS Investment Research

  The S&P 500 closed near its all-time high on Friday after the Fed cut rates by 50bps on Wednesday. The Fed 's jumbo rate cut might have surprise d some investors on Wall Street, per CNN. But coincidentally, three US Democrat senator s , Warren, Whitehouse and Hickenlooper, sent a letter to J. Powell on Monday to urge the FOMC to cut even deeper, by 75 bps. The Fed 's action has sent the 2Y treasury yield to dip below its 600-day EMA, meaning the US could be entering a recession or already be in a recession. In the past 25 years, all three US recession s occurred after the 2Y treasury yield drop ped below its 600-day EMA. Don't rush to sell everything just yet. If it is just a mild recession, it should have minimal impact on the financial markets so let 's see how the Fed will re act to economic and inflation data in the next few months. This note contained herein is our opinion and should not be construed as a recommendation to buy or sell. Click

The S&P 500 broke above the key 5,600 resistance level to close at 5,626.02 on Friday. Next week, t he index may be retesting the trendline resistance ~ 5,643. The market is expecting a 25 basis point rate cut on Wednesday but some strategists have already raised their expectations for a 50 basis point cut . Pending the Fed's decisions, a breakout could send the S&P 500 higher to retest the trendline resistance at 5,732. This note contained herein is our opinion and should not be construed as a recommendation to buy or sell. Click here to view the latest update !