Transcript of Brooke Thackray, Horizons ETFs:
Last week the S&P 500 took a little bit of a pause here and was negative for the week here from an RSI oversold position above 70 and turning down, but that's expected we've had strong rally in February but we're still in that six months favourable seasonal period from the end of October into the beginning of May.
If we take a look at indications of where the market might be going right now, first of all the Fed is expected largely to raise rates on February 15th this week; the CME Group has the expectations at ninety-three percent and they've been high for a long time,
Let's take a look at the price action last week in specific:
What we saw was the market was down for the week, but we have strong ADP payroll number on wednesday; the market opened up a little bit and closed down, so the market ended down on positive economic news
On Friday we had a strong non-farm payroll number the market opened up traded up and down all day, and was basically flat for the day so we saw muted pressure reaction.
So the stock market is not really responding strongly to positive strong economic news.
If we see this on Wednesday when the Fed raises rates and as expected and the market pulls back a bit, that would be like the trifecta of big economic news coming out, with market reacted fairly muted or negative which means the market might be in for a little pause still yet
Thank you
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