Transcript:
Tom Vaughan:
Everybody, welcome to Tuesday, the S&P 500 was up 1%. Today, good news part was actually opened up down and then ended up. And that’s a really good sign. And essentially, we’ve been trading in the same sideways range for the last seven days, but we’ve been hitting the top of that range more often. And so when you’re hitting the top or hitting this resistance, you’ve got a bunch of sellers that are willing to take their money off the table at that price. But if you keep hitting it, eventually dry them up. And that’s what causes you to kind of get through that and start moving into the next resistance area. And you know, that seems very likely to happen, except for the fact that we have this report from the inflation, the Consumer Price Index, coming out on Friday, because that’s what is King right now definitely is inflation, there’s no doubt about it. And so, you know, if inflation comes out higher than expected, we could drop at a bottom of this range of inflation comes out, you know, lower than it was in April, we could, that could be the catalyst that gets us to the next level. And so within that inflation number, we’re going to be kind of focusing on two major categories really kind of goods and services, most of the inflation that we’ve seen has come in the area of goods, because the pandemic has really kind of damaged, some of the services area, people haven’t been traveling as much. They haven’t been, you know, going to restaurants as much. But that’s starting to change.
And we’re actually seeing some reports that some of the goods are slowing down like Target talked about, you know, having to mark down some of their inventory today. And we’re seeing big numbers coming out, for example, airplane flights are going up in costs and those type of things. And this is a good thing all together, because there’s been too much concentration of money going into just the good side, if we can spread that out. I know Chairman Powell, the Federal Reserve have talked about this several times, the spreading of that out should soften inflation overall. So we’ll see how that plays out. I think that’ll be very interesting to look at it Friday. But secondly, is just the energy prices, which are a big component of this. They actually came down in April, and that helped bring down the inflation number in April, but they came up in May. So we’ll see how that offsets these other things that are happening. So anyway, very interesting time as usual. We’ll just have to wait and see what happens here. But the market is doing the right things right now is definitely trying to move out of this range. And hopefully the inflation number comes out at something decent and it can move on and continue to, you know, start this recovery process if that’s what we’re having now. So, anyway, look forward to talking to you tomorrow. Thank you very much.