Late last week congress avoided a government “shutdown” and passed an extension that pushed a budget decision out a week or so.
If you remember, we’ve been through this before a few times over the last few years. Previously it had more drama and volatility in the markets. But now it seems that everyone knows they will come to some kind of an agreement and the government will not “shut down.”
Meanwhile, the reality of price patterns on the S&P 500 futures shows a high probability of a pullback in the short term. We had a small run up and it looks pretty clear that it is moving down for now.
The big news next week will be the FOMC (Fed Open Market Committee) meeting announcement on Wednesday, 5/3/17. The outlook on the US Economy and what the Fed will do with interest rate timing will be forefront on the minds of market participants. Expect some volatility after the announcement.
Gold is still in a Bullish Trend. After a minor pullback, it is showing signs of continuing the latest rally. As of Sunday evening, the Gold futures market is up and all signs point to more highs.
Oil is very difficult to trade right now. We did get a really nice short-term, short trade last week on a strong move down. But, on the daily charts, the trend is not clear. Oil is stuck in a wide and volatile channel.
That’s it for this week. If anything material changes we will send a mid-week update. Meanwhile, be careful, use strict Risk Control and keep your winner big and losers small.
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