Better employment costs shift mood to risk-on at SPX500 cash open

Source: www.tradingview.com
The potential for a wage spiral seems exaggerated. The employment cost index is 1.0% q/q. This is lower than the forecast of 1.1% q/q and the previous 1.2% q/q. Tomorrow, the Fed will hike by 25bps and release its statement. The lower than anticipated costs will be welcomed by the central bank.
The real rate spiked down (blue arrow) following the release with money moving back into risk. The SPX500 jumped on the hourly (green arrow).
The SPX500 is trading in its daily bullish channel between the upper blue and red bands. The better employment costs have improved market mood and the hourly EMAs and stochastic are crossing up (black ellipses). A stochastic in the 80+ level and holding (blue arrow) will connote that a bullish swing is underway.
Russell Shor
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.