The market as defined by the S&P 500 percolated over the past five days. We opened the week Monday May 11 at 2115.56 and closed Friday May 15 at 2122.72. That means we had new highs established on Thursday and Friday, but were only up 7.16 points for the week. We remain in a tight trading range for the S&P 500 with support remaining at 1970 and resistance at the 2120 level. You will notice that we slightly exceeded resistance with Friday’s close. It will be interesting to see the market will build on that or have short term pullback as we have been seeing of late.
The news this week remained focused on the Yield of the US Treasury. Last week we had a sharp spike upward, and the trend continued to midweek with the Yield on the 10 year Treasury reaching 2.28% on Monday, pulling back to 2.15% at the close Friday. We will continue to watch rates closely, as the Fed has done little if anything to tighten rates and the recent increases are market driven.
We maintained out positions this week, and will continue do so until there is a reason to do otherwise. I will be watching this week to see if the S&P 500 can hold the 2120 level and continue to move higher.
The minutes for The Federal Open Market Committee will be released on Wednesday, May 20. It is always interested to see how the minutes are viewed by commentators.
I hope you had a great weekend.
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