Stocks rally in the face of “overbought” cries | Forexlive

The major indices are closing sharply higher with the NASDAQ index leading the way. That index never moved into negative territory helped by hopes for a soft landing. The lowest the index reached was +66.6 points (oh not that number).

US PPI data came in weaker than expectations at -0.5%. The core PPI was fell -0.1%. The YoY PPI Final demand tumbled to 2.7%. The initial jobless claims also showed weakness suggesting that jobs market is starting to weaken.

The gains in stocks come as analyst chirp how the markets are not pricing in the imminent recession. Yet the S&P added 1.33% today and traded to the highest level since February 14. The high in the S&P reached 4150.26. The February high from February 2, reached 4195.44. That is the next target on more upside.

Meanwhile in the debt market, the Fed is being left behind as they talk about keeping rate unchanged through year end, while the market has now taken the January 2024 Fed funds contract to a targeted yield of 4.33%.

Stocks are overbought. Yields are too low. It will be interesting to see how it all plays out.

The closing levels in the stocks are showing: