On economic front Friday surprised markets with positive PMI manufacturing index and ISM manufacturing survey inspite of contraction in China. However, S&P made side ways movement trying to clear up the over bought condition. Not much changed from last post - cycles are still indicating higher prices ahead in the short term inspite of over-bought daily. Anticipating a positive green up close on Monday 02/04/2019 going into Tuesday 02/05/2019.
Did the economic news on Friday triggered the pullback in bonds? No - bond prices were at a hourly cycle high (low for the yields) bringing in the pullback (see cycle chart for TLT). Anticipating further short term pullback to continue in the next few days.
As noted in previous post, downward pressure on US Dollar Index should still continue further as cycles have not bottomed.
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| S&P 500 Futures hourly - 02/03/2019 |
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| TLT hourly - 02/03/2019 |
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| US Dollar Index hourly - 02/03/2019 |