The stock market in the US has corrected significantly
indices like the Dow and Nasdaq 100 are clearly flashing sell signals,
according to a savvy market observer I talk to
on dreaded golden cross breakdowns.
The S+P 500 is ready to do the same thing
50 Day SPX 4476 crossing below the 200 Day a SPX 4467
which occurs when 50 Day Moving Averages, cross below 200 Day Moving Average.
Supportive of thr bear case can be found in Breadth participation as it continues to decline,
leaving fewer and fewer stocks in positive technical position. just 30 % of stocks now above 50 Day Crossover
Volatility in the S+P 500 continues to be above VIX 30,
meaning that traders continue to expect and fear imminent lower stock prices,
on the back of markedly higher inflation where it hurts the most, food and energy prices.
The Federal Reserve meets this week, and announces their decision on interest rates.
It is over a 90 % chance that rates will rise at least .25 Basis Points this week.
The market has thus already discounted this pending rate hike.
However, here's the catch.
Against such a negative market back drop
US stocks may be primed to do the exact opposite this week,
They may follow the Federal Reserve meeting
with a very sharp counter trend rally of their own,
that could fly in the face,of bearish market expectations that has already been set at the table.
The stock market you see, in climbing a wall of worry,.. is very peculiar that way.
THE_UNWIND
3/13/22
Woods Of Connecticut
I
indices like the Dow and Nasdaq 100 are clearly flashing sell signals,
according to a savvy market observer I talk to
on dreaded golden cross breakdowns.
The S+P 500 is ready to do the same thing
50 Day SPX 4476 crossing below the 200 Day a SPX 4467
which occurs when 50 Day Moving Averages, cross below 200 Day Moving Average.
Supportive of thr bear case can be found in Breadth participation as it continues to decline,
leaving fewer and fewer stocks in positive technical position. just 30 % of stocks now above 50 Day Crossover
Volatility in the S+P 500 continues to be above VIX 30,
meaning that traders continue to expect and fear imminent lower stock prices,
on the back of markedly higher inflation where it hurts the most, food and energy prices.
The Federal Reserve meets this week, and announces their decision on interest rates.
It is over a 90 % chance that rates will rise at least .25 Basis Points this week.
The market has thus already discounted this pending rate hike.
However, here's the catch.
Against such a negative market back drop
US stocks may be primed to do the exact opposite this week,
They may follow the Federal Reserve meeting
with a very sharp counter trend rally of their own,
that could fly in the face,of bearish market expectations that has already been set at the table.
The stock market you see, in climbing a wall of worry,.. is very peculiar that way.
THE_UNWIND
3/13/22
Woods Of Connecticut
I