Daily Update - 02/25/2019
On US-China trade talk optimism, S&P futures gapped up from previous close of 2795 and headed up all the way to 2814 (a gain of 19 points) exceeding our target of 2809 by 5 point. However, the rally was short-lived primarily because the hourly cycles were down (as noted in the weekly post) and S&P futures reversed all of the gains finally closing unchanged at 2795. We may see a bit more of weakness tomorrow before the short term cycles bottom.
US Dollar Index closed slightly lower at 96.30 but above the 96.26 support level - if this doesn't hold on a closing basis, on the short term it would be bearish. Gold closed slightly lower at 1330 - but it should uptrend as cycles have turned up.
On economic front, the Chicago Fed National Activity Index came sharply lower at -0.43. It's 3MA is unchanged at positive 0.16. Wholesale inventories came at a bloated 1.1% - inventories are rising compared to sales. Tomorrow, we get housing starts at 8:30 am and home price index, consumer confidence at 10:00 am.