02 February 2023 – 09:20 Central Euro Time

Following the anticipated +0.25% FOMC interest rate raise, the BEGOS Markets are relatively quiet with only Copper at present outside (below) its Neutral Zone for today. Session volatility is mostly light. Gold (rather than running out of puff as we’ve recently suggested) has traded thus far today as high as 1975, a price not seen since this past 19 April. The MoneyFlow in the S&P 500, notably post-FOMC, is robust even as the “live” P/E this morning (futs-adj’d) is 41.0x, which historically is an unmaintainable level; too, the Index is now measured for 14 consecutive days as “textbook overbought”; indeed we still seek an S&P sub-3000 as the year unfolds. And by the S&P’s regression channel (on occasion posted in The Gold Update), had COVID not occurred, the Index today on such growth track would likely be sub-3000 regardless. Amongst today’s incoming metrics, the Econ Baro looks to December’s Factory Orders, plus the initial read of Q4’s Productivity and Unit Labor Costs.