S&P 500 Technical Analysis: The dovish bias remains a tailwind for the market
Fundamental
Overview
The soft NFP report on Friday was again faded
completely by the stock market because of the focus on Fed rate cuts. In fact,
the dovish bets on the Fed increased and the market is now expecting three rate
cuts by year-end (68 bps).
Moreover, we have also an 8%
probability of a 50 bps cut in September but that will likely happen only if we
get a soft CPI report today. In that case, the stock market might get another
boost to push into new all-time highs.
The bigger picture hasn’t changed
much as the stock market continues to see better growth ahead despite all the
doom and gloom coming from analysts and economists. The market doesn’t care
about what has happened in the past quarters but how things are likely…
