Market Snapshot April 15, 2019

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Good Morning on this fantastic Monday,

 

Bonds are flat on the morning, but down from Friday and under pressure. We have traded back down to the 50-day moving average. Not to get to deep in these weeds but that is a fairly significant line that we don’t want to cross. We will know shortly whether the lines in the sand are going to hold or if we will see a retracement of 50% of the recent gains. If we go down this path, the optimist in me wants to say it is not uncommon and could even be healthy. There are some bigger data sets out  later this week: China GDP, retail sales, and new home sales.

 

This morning Chicago Federal President Evans stated in an interview that he feels rates should be left at current level until fall of 2020 to support sustained inflation.

 

Time to be aware of where the market is as we are going to see a breakout shortly. Unfortunately, the technical indicators are currently bearish suggesting worse rates are the more likely outcome. Tomorrow’s China GDP will have an impact.

 

Make today great!