DPR Update – Wed 5th April, 2017

DPR Action:  No Changes, nothing to do

U.S. stocks erased earlier gains to close lower today after the Federal Reserve released the minutes from its March meeting.

The minutes showed Fed officials want to start unwinding the central bank’s massive $4.5 trillion balance sheet later this year.  This seemed to spook investors across the board.  That was quite the puke on the minute chart of the S&P 500.

Unwinding the balance sheet is significant both because of its sheer size and the impact it could have on markets, as Fed members including Chair Janet Yellen have indicated that the move itself would amount to a rate hike.

On the data front, private payrolls rose by 263,000 last month, well above a consensus estimate of 185,000. The February number was revised significantly lower, however, from the originally reported 298,000.  The bigger focus will be the jobs report for March on Friday at 8:30am

Other data released Wednesday the Institute for Supply Management non-manufacturing index which came in at 55.2, below an expected read if 57.  However, anything above 50 is seen as expansion.

Overseas, European equities traded mostly higher while Asian equities also rose as investors turned their eyes to President Donald Trump’s meeting with Chinese President Xi Jinping.

Bottom line, if the market hadn’t rallied so much today this sell-off into the close would have told me to get out of the market, but, as is, it’s nothing much to look at on the charts.  Therefore, no changes.