Wall Street was giving the impression this week it was really trying to go down, but couldn’t. The Nasdaq has continued to graft to new highs on the tech story but the S&P500 is finding a wall at 2400 and the Dow has been impacted by individual earnings reports.
The problem is, it can’t really go up either. Not, it would appear, until there’s some more concrete news on tax reform, and/or infrastructure spending, bank regulation roll-back and so forth. The buyers are assuming this news will come, eventually. In the meantime, Wall Street continues to track sideways while looking vulnerable, and everyone is worried with a VIX in single digits.
Australia has its own issues to deal with while Wall Street provides no lead. Next week sees housing finance data released, which plays into one of the major issues facing the market at present. The minutes of the RBA meeting are also due, and the unemployment lottery will be held. More importantly for the RBA, next week brings the March quarter wage price index.
China will release April industrial production, retail sales and fixed asset investment numbers on Monday.
The US will see housing sentiment and starts, industrial production and the Empire State and Philly Fed indices.