May 30, 2024
Oversold Bounce
Friday Market Rally
Economic Growth
Q1 GDP has cooled down. Some analysts are digesting slower growth as a pending recession concern. However, slowing growth also means slower inflation. Remember that a slowing economy sets up a dovish Fed: rate cuts and QE.
Fed Inflation
April's PCE will determine If the Market can keep up the bullish trend or break down and consolidate until the Employment report ( employment is the next significant data point).
OVERSOLD SPY
If PCE comes in line I'm expecting the S&P 500 to bounce around the 519-520 level. If PCE comes in stronger than expected the S&P could see 515 on Friday May 31st.
