Global macro overview for 02/03/2017:
The President Trump's first address before the joint session of Congress yesterday had been largely positive amongst the market participants, however, his speech again failed to provide solid direction for investors. Trump mainly reiterated his campaign promises when he had called for over $1Trillion investment in infrastructure, intentions to replace Obamacare and again pledged massive tax relief for the middle class. In the result, the stock made new all-time highs as global investors still believe the promises made by Trump despite any specific actions towards promises fulfillment. The global equity rally goes on and it reminds me one of the oldest investment saying: buy the rumor, sell the news. Anyway, time will tell.
Let's now take a look at SP500 ETF (called SPY) technical picture at the H4 time frame. The bulls have managed to make another all-time high at the level of 240.22, but there is still an unfilled gap at the level of 237.29. This level will now act as a technical support for the price and another higher low might be made around this level. Only a sustained break out below the level of 235.17 would indicate a larger corrective cycle coming on, otherwise the outlook remains bullish.
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