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Market Trends | Markets
Fed Makes Big Pivot to Employment Mandate: Market Trends This Week
David Russell
September 19, 2024

Downloads are available here. TradeStation’s ideas on TradingView are available here.

Check out our next “State of the Market,” on Monday, 9/23.

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Sizing Up the S&P 500

  • S&P 500 flirts with new highs
  • 9-day rate of change positive again
  • Above most moving averages
  • Holding weekly low of 5604
  • Next potential support at 5560
  • Potential “bullish triangle” with higher low in September versus August.
S&P 500, daily chart, with select patterns and indicators.

Key News

  • Powell pivots from inflation to jobs:
    • July: “We are strongly committed to returning inflation to our 2 percent goal in support of a strong economy that benefits everyone.”
    • September: “We are committed to maintaining our economy’s strength by supporting maximum employment and returning inflation to our 2 percent goal.”
    • Inflation moves from first to second place. (Underlines added.)
    • Fed raises unemployment projection from 4% in June to 4.4%
    • Dot plot suggests 50bp more of cuts in 2024
  • Economic data surprising to upside:
    • Retail sales beat estimates for 3rd straight month, boosted by autos
    • Housing starts, building permits beat as single family accelerates
    • Rail traffic +6.8%, continuing recent strength
    • Consumer sentiment inches higher
  • Bank of America: Fund managers are “nervous bulls” as utilities outperform.

Upcoming Events

  • Wed 9/25: New home sales, crude oil inventories
    • Post market earnings: MU
  • Thu 9/26: Powell speech, jobless claims claims
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About the author

David Russell
David Russell is Global Head of Market Strategy at TradeStation. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them apprised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.

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