{"id":64112,"date":"2023-04-21T17:55:22","date_gmt":"2023-04-22T00:55:22","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=64112"},"modified":"2023-04-23T12:21:04","modified_gmt":"2023-04-23T19:21:04","slug":"wake-me-once-markets-sleepwalking-ends-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2023\/04\/21\/wake-me-once-markets-sleepwalking-ends-the-market-breadth\/","title":{"rendered":"Wake Me Once the Market’s Sleepwalking Ends – The Market Breadth"},"content":{"rendered":"\n

Stock Market Commentary:<\/strong><\/h2>\n\n\n\n

The no worries stock market<\/a> is sleepwalking its way through April. The major indices are stuck in tight ranges near or at key technical resistance and support levels. Yet, market breadth remains relatively low as many of the big market leaders hold up the tent. Meandering economic data induces some of this sleepwalking. Just when the market thinks weak economic data has finally arrived to convince the Federal Reserve to stand down from tight monetary policy, strong economic data comes along to dash those hopes for the near term.<\/p>\n\n\n\n

Yahoo Finance took the latest S&P Global Flash US Composite PMI<\/a>\u2122 and concluded that “the US economy is in the midst of its biggest upturn in nearly a year<\/a>.” The S&P’s report shows the continued growth in the services sector and a manufacturing sector that rose from (marginal) contraction territory and back into (marginal) expansion territory. The manufacturing PMI is even at a 6-month high. Job creation “accelerated” to start the second quarter. Along with stronger economic performance comes fresh inflationary pressures. Per the S&P:<\/p>\n\n\n\n

\n

“Following back-to-back months of softening cost pressures in February and March, April data indicated a pick-up in rates of input cost and output charge inflation. Operating expenses rose at a marked and historically elevated pace that was the steepest for three months. Hikes in supplier prices were often attributed to greater incremental increases in material costs during the month. Manufacturers and service providers alike recorded sharper increases in cost burdens.”<\/p>\n<\/blockquote>\n\n\n\n

This report validates my claims that inflationary pressures remain alive and well in the economy<\/a>. The Federal Reserve has reasons for concern for what might happen when\/once they pause rate hikes. The good news is that the economy is somehow managing to motor along despite the tightening to-date. This post-pandemic economy is full of surprises and continues to prove many economists and pundits wrong over and over again. The next up is the May decision on monetary policy from the Federal Reserve…a moment that could provide just the catalyst the market needs to wake from its sleepwalking….to the downside or the upside.<\/p>\n\n\n\n