Daily Update - 03/01/2019
Today, there was some action in markets. From yesterday's close of 2787, S&P futures rallied 21 points to 2808 right at the expected cycle high time and started to reverse. Futures declined by 20 points to 2788. But this decline was short lived and similar to previous down cycles, S&P made another uptrend attempt to retest the high reaching 2807 and closed there. Further outlook to be covered in weekend post.
Our US Dollar cycle has been doing quite well so far. As covered in previous posts, after hitting a bottom at 95.71 yesterday at cycle low time, it has got past the important 96.26 resistance level and reached a high of 96.48 finally closing at 96.38. Uptrend in US Dollar, led to a significant 22 point decline in Gold closing at 1294.
On economic front, in december, personal income came higher by 1% m/m but consumption declined -0.5% m/m, PCE price index increased slightly by 0.1% m/m and Core PCE (exclude food and energy) increased by 0.2%. PMI manufacturing index dropped to 53.0 and ISM manufacturing index dropped to 54.2 in February - these are significant drops compared to higher reading in January (54.9 and 56.6 respectively) from what we saw in December. Consumer sentiment improved to 93.8 in February but still below December reading. On Monday, we get data on motor vehicle sales and construction spending at 10:00 am.