Hey All,
Just some food for thought but We have multiple charts showing some downwards pressure coming to markets all are shown below and with the CPI coming out this week and Fed rate decision we have the catalyst for another sell off. We have an Weekly engulfing bearish candle on the SP500, Vix bouncing off a falling wedge and trend line, US dollar also bouncing off support line and possible head and shoulders developing on it, Silver with negative divergence and both the 2yr and 10 yr bond yields bouncing off trend support lines. All of these charts point that pain is coming to the market. My belief is we will retest the previous low at least then find some buyers possibly rallying back from there or as indicated on the chart maybe another pump and dump lower but we wont know until we reach that point. I do think this will be the last leg down for a while until later in 2023 as company health and earnings will be the bigger question on the markets mind as rates will stagnate. This would follow previous rate and market movements in previous corrections for example rates in 2007 stagnated but markets then declined and recession in 2008, 1999 rates started to stagnate then in 2000 recession and market decline started same in 94-95 and 87. I feel the main charts to focus on at the DXY and the yields if the dollar creates the head and shoulders pattern we could see a strong short squeeze of the previous low on the SP500 and Dollar start falling but we will know if there is more pain after that if yields start stagnating or increase more.
Just some food for thought but We have multiple charts showing some downwards pressure coming to markets all are shown below and with the CPI coming out this week and Fed rate decision we have the catalyst for another sell off. We have an Weekly engulfing bearish candle on the SP500, Vix bouncing off a falling wedge and trend line, US dollar also bouncing off support line and possible head and shoulders developing on it, Silver with negative divergence and both the 2yr and 10 yr bond yields bouncing off trend support lines. All of these charts point that pain is coming to the market. My belief is we will retest the previous low at least then find some buyers possibly rallying back from there or as indicated on the chart maybe another pump and dump lower but we wont know until we reach that point. I do think this will be the last leg down for a while until later in 2023 as company health and earnings will be the bigger question on the markets mind as rates will stagnate. This would follow previous rate and market movements in previous corrections for example rates in 2007 stagnated but markets then declined and recession in 2008, 1999 rates started to stagnate then in 2000 recession and market decline started same in 94-95 and 87. I feel the main charts to focus on at the DXY and the yields if the dollar creates the head and shoulders pattern we could see a strong short squeeze of the previous low on the SP500 and Dollar start falling but we will know if there is more pain after that if yields start stagnating or increase more.
