Investors See a Rate Hike From the FOMC Wednesday

Investors See a Rate Hike From the FOMC Wednesday

Investors See a Rate Hike From the FOMC Wednesday


  • Retail investors are not waiting to see inflation coming, they know it is here.

And are moving money into securities that hedge against risks of rising price pressures as the U Labor Department is set to give its latest reading on consumer prices Tuesday.

Over the past 2 weeks, a total of $1.74-B has flowed into these ETFs, comparable to the amount seen during a similar-sizer period surrounding the 2016 US Presidential election frame.

Rising gasoline prices probably helped fuel a 2.7% Y-Y surge in the May consumer-price index, the biggest advance since February 2017, economists forecast for the report Tuesday.

The core CPI is projected to climb 2.2%, the most in more than a year.

The breakeven inflation rate is traders’ outlook for CPI over the years ahead, signaled by 10-year inflation-linked Treasuries traded Monday at 2.13%, up from 2.09% at the end of last month and from 1.78% a year ago.

Staying Bullish on Break-evens.

Investors didn’t receive any notable economic data Monday.

Tuesday’s reports include the Consumer Price Index for May (consensus +0.3%), the Treasury Budget for May, and the NFIB Small Business Optimism Index for May.

Monday, the major US stock market indexes finished at: DJIA +5.78 at 25322.31, NAS Comp +14.41 at 7659.93, S&P 500 +2.97 at 2782.00

Volume: Trade on the NYSE came in at 875-M/shares exchanged

  • NAS Comp +11.0% YTD
  • Russell 2000 +9.1% YTD
  • S&P 500 +4.1% YTD
  • DJIA +2.4% YTD

HeffX-LTN’s US Major Stock Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
11 June 2018 QQQ 174.76 Bullish (0.27) 153.45   None
11 June 2018 DIA 253.22 Bullish (0.34) 250.92 254.07
11 June 2018 SPY 278.20 Bullish (0.40) 278.11 280.15

Stay tuned…


The following two tabs change content below.

Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

You must be logged in to post comments :