This week we had two events that caused directional movement. First, President Trump bowed out of the Paris Agreement; this may help bonds, which in turn helps lower interest rates. Additionally, the jobs report was not as favorable as expected. While there were gains in new jobs, there were a lot of folks leaving the workforce.
The 200-day moving average can indicate two options; one is a ceiling of resistance or a floor of support. For 2016, we were mostly above the 200-day moving average. Post election there was a big market rally that pushed the average down. We are watching to see what happens next week. There could be an improvement of a small percentage, which will benefit your costs.
