Daily Update - 02/28/2019
Not much action in S&P today. From yesterday's close at 2796, futures declined to 2782 and found support. Then moved higher to 2794 but finally declined to close lower at 2787 for a loss of 9 points from yesterday. Short term cycles are still up-trending going into tomorrow and providing support to prevent major downside until then.
As anticipated in yesterday's post, early today US Dollar made a lower low at 95.71 (previous low was 95.76) exactly at the projected cycle bottom time and from there started to uptrend reaching a high of 96.20 and closed at 96.12. Uptrend momentum should be strong if it closes above overhead resistance of 96.26. A push up in US dollar led to a 7 point decline in gold closing at 1315.
On economic front, real GDP came in at 2.6% growth rate for Q4' 2018 - consumer spending came at a weak 2.8%, residential investment declined by 3.5%. Jobless claims came inline around 225K. On the positive side, chicago PMI rose to 64.7 from previous 56.7 - new orders and production jumped. Fed balance sheet shrunk by $6B only. Tomorrow, we get personal income and outlays at 8:30 am, PMI manufacturing index at 9:45 am, ISM manufacturing index and consumer sentiment at 10:00 am.