SP500: Breakout-retest may be confirmed after PCE data on Friday

 


The S&P 500 closed on Friday at the key 5,667 resistance level as the market ignored Trump's talk and was more focused on the Fed's action. We expect the index to break above this level, as well as its 600-day EMA, next week ahead of the release of the February PCE data on Friday. The PCE is closely watched by the Fed and expectations are for a 0.3% increase.

Keep an eye on the 2Y treasury yield, now retesting its 600-day EMA. In the past 25 years, all three US recessions occurred after the 2Y treasury yield dropped below its 600-day EMA.

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!

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