- The S&P 500 continues to show a significant amount of resilience as the Thursday session has been positive.
- We have broken above the highs of the Wednesday session, which was kind of ugly.
- Now it looks like we are going to do whatever we can to get above the 7,000 level.
- We probably need some type of catalyst, and that catalyst, more likely than not, will come in the form of earnings reports.
There are several companies reporting over the next couple of weeks, and that, of course, gets the markets moving. If we do pull back from here, the 50-day EMA currently sits at the 6,847 level and rising. It's more or less going to be a trendline if you will.
Economic Growth Continues to be the Story
The US dollar is stronger, but that doesn't seem to be hurting the US. I think at this point, what we have is a situation where economic growth in the United States continues to be the story. Despite the fact that the jobs report last week was a little weaker than anticipated and PPI was as well, retail sales blew the estimates out of the water, coming in at 0.6% instead of the expected 0.2%.
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With that being said, I would also perhaps give a little bit of a positive premium to the market due to the fact that it does not look like things are going to escalate out of control between the United States and Iran. That, of course, has a certain amount of bullish behavior to it, at least relief if nothing else. I think this remains a market that you are buying on dips.
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