The S&P 500 had a nice rally on Friday but still finished down for the week at 3863. Monday through Thursday saw the S&P 500 continue its downward trend from the previous Friday. On Wednesday, June's CPI rose 9.1% on a year over year basis which was higher than expected and the highest level since 1981. June's PPI reported wholesale prices rose 11.3% versus a year ago. And on Friday, banks also reported disappointing earnings. On a different note, in currency markets the euro fell below parity (a 1:1 value) with the dollar this week, the first time the euros value has slipped below this mark since 2002. From a technical perspective, the S&P 500 has been seesawing between up and down weeks over the past month and continuing to build that base. Over the last three weeks, the S&P 500 has headed in one direction on Monday through Thursday, only to reverse direction on Friday. As such, this channel now has a low of 3636 to a high of 3946. For TSP TIPS and similar to last week, should the S&P 500 break above its 28 June intraday high of 3945.86, stand by for a mid-week alert.
The S&P 500 had a nice rally on Friday but still finished down for the week at 3863. Monday through Thursday saw the S&P 500 continue its downward trend from the previous Friday. On Wednesday, June's CPI rose 9.1% on a year over year basis which was higher than expected and the highest level since 1981. June's PPI reported wholesale prices rose 11.3% versus a year ago. And on Friday, banks also reported disappointing earnings. On a different note, in currency markets the euro fell below parity (a 1:1 value) with the dollar this week, the first time the euros value has slipped below this mark since 2002. From a technical perspective, the S&P 500 has been seesawing between up and down weeks over the past month and continuing to build that base. Over the last three weeks, the S&P 500 has headed in one direction on Monday through Thursday, only to reverse direction on Friday. As such, this channel now has a low of 3636 to a high of 3946. For TSP TIPS and similar to last week, should the S&P 500 break above its 28 June intraday high of 3945.86, stand by for a mid-week alert.