5.4 Technical Analysis
Note: This article does not indicate or recommend buying or selling timing.
Please make your own investment decisions.
The ISM Manufacturing PMI was released, coming in at 60.7 against expectations of 65, a significant pullback.
The ISM Manufacturing PMI was weak, but there was no notable reaction in stock prices.
Reading the Bloomberg article will provide some clarity on this.
In summary, issues such as rising raw material prices (copper, steel, etc.) and transportation delays due to the COVID-19 environment have been cited as supply chain problems for some time, but considering that orders-on-hand have reached a record high, demand does not appear to be weakening, while supply cannot keep up, leading to
a large imbalance in the supply-demand balance that pushed down the business confidence index.
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