HIBL - Why The Rally Should Continue
2024-05-06 09:30:10 ET
Summary
- Despite near-term challenges and increased volatility, the S&P 500 rally is expected to continue.
- The technical analysis suggests a positive trend for the SPX, but a breakout above resistance is needed for further confirmation.
- The odds of a Fed rate cut may have become skewed, and inflation data could come in lower than anticipated.
The S&P 500/SPX ( SP500 ) rally should continue despite the near-term challenges and increased volatility. We finally saw the labor market chill, with just 175K new jobs created in April vs. the estimated 243K . The labor market cooling, lower oil prices, and other indicators suggest we should continue seeing inflation moderating. Moreover, future inflation data like the CPI, PCE, and others could come in lower than anticipated, opening the door for Fed cutting sooner than the market expected....
Why The Rally Should Continue