S&P 500 Flat to Little Changed Ahead of FOMC’s Policy Decision

S&P 500 Flat to Little Changed Ahead of FOMC’s Policy Decision


FLASH: The latest fund manager survey from Bank of America showed the allocation to equities is at its lowest since September 2016 indicating that managed money missed the 2019 rally and will have to play catch up soon.

The S&P 500 advanced 0.7% Tuesday, on Dovish expectations ahead of the FOMC’s policy decision on Wednesday.

However, conflicting US-China trade headlines triggered some profit-taking on recent gains. The S&P 500 was down as much as 0.3%, closing near its flat line.

The S&P 500 utilities (-1.2%), financials (-0.8%), and industrial (-0.4%) sectors underperformed the broad market.

On the other side of the coin, healthcare (+0.8%), consumer discretionary (+0.5%), and information technology (+0.2%) sectors were the 3 groups to finish with gainers.

US Treasuries finisshed lower, pushing yields slightly higher. The 2-yr yield and the 10-yr yield increased 1 bpt each to 2.46% and 2.61%, respectively.

.DXY declined 0.2% to 96.37 and NYMEX WTI Crude Oil increased 0.1% to 59.34 bbl.

There is some speculation that the Fed’s dot plot will show a reduced rate-hike projection for all of Y 2019, and that the it could announce a plan regarding the timing for ending its balance sheet runoff, we believe that will happen in September/October.

Tuesday, the major US stock market indexes finished at: DJIA -26.72 at 25887.38, NAS Comp +9.47 at 7723.94, S&P 500 -0.37 at 2832.57

Volume: Trade on the NYSE came in at 968-M/.shares exchanged

  • NAS Comp +16.4% YTD
  • Russell 2000 +15.3% YTD
  • S&P 500 +13.0% YTD
  • DJIA +11.0% YTD

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish in here.

Stay tuned…

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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.

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