S&P 500 Lower Off Jobs Report

S&P 500 Lower Off Jobs Report
S&P 500 Lower Off Jobs Report

S&P 500 Futures—The S&P 500 in the September contract is trading at 2989 lower by 11 points off of the monthly jobs number showing that we added another 224,000 new jobs which was construed as bearish due to the fact that the Federal Reserve might not lower rates. If you have followed any of my previous blogs you understand that I’ve had a bullish bias towards the upside for quite some time and I still think higher prices are ahead.

The main catalyst for the surge in equity prices is the fact that the 10 year note is now yielding 2.02% which is remarkable in my opinion especially for the growth rate that we are experiencing here in the United States with the GDP average of over 3%.

Generally speaking you don’t see interest rates this low when economies are surging, however one of the main reasons for bond yields to continue to head lower is the fact that Europe which is a collection of socialist countries that have no economic growth as they are the catalyst for lower interest rates as many of them are experiencing negative rates while at the current time the 10 note stands at 2.02% & still looks expensive.

In my opinion I still believe the S&P 500 will trade significantly higher come year end as I see no reason to be bearish the U.S economy as this is the perfect soup with low interest rates coupled with the fact that the Federal Reserve will back up the U.S economy.

TREND: –HIGHER

CHART STRUCTURE: IMPROVING

VOLATILITY: AVERAGE

 

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