SPXUSD Daily cautiously bearish. Recommended ratio: 10% SPX, 90% Cash.
*Equities and Cryptos are getting smashed as DXY and US Treasuries rally higher. Quite simply this is a response to global recessionary fears (amplified by last week's disappointing global economic data) and a commitment by the Fed to continue FFR hikes for the rest of the year. It seems as though investors are preparing for more hawkishness from Jerome Powell's upcoming speech in Jackson Hole on 08/26; which leaves tremendous surprise upside to markets if he gives any hints of dovishness. Key Upcoming Dates: S&P US August PMI at 945am EST 08/23; US Q2 Final GDP Estimate at 830am EST 08/25; US July PCE at 830am EST 08/26; UofM Final August Sentiment Survey Index at 10am EST 08/26; Jackson Hole Economic Symposium on 08/25-08/27.*
Price is currently trending down at $4138 and is still technically hanging on to $4175 support. Volume remains Moderate (high) and has favored sellers for two consecutive sessions; Price is currently trading in the second largest medium-term supply/demand zone on the chart. Parabolic SAR flips bullish at $4323 (this coincides with the 200 MA + the upper trendline of the descending channel from November 2021), this margin is neutral at the moment. RSI is currently trending down at 51 with no signs of trough formation and is technically testing 52.68 support; the next support is the uptrend line from 01/27/22 which coincides with 38 support. Stochastic remains bearish and is currently testing 18.32 support with no sign of trough formation. MACD finally crossed over bearish today after 56 days being bullish and is currently trending down at 74; the next support (minor) is at 55.35. ADX is currently trending down at 29 as Price continues to fall, this is neutral at the moment.
If Price is able to bounce here it will have to close above $4175 resistance to flip it back to support before it can attempt to retest $4254 minor resistance. However, if Price continues to break down here, it will likely retest the uptrend line from 06/16/22 at ~$4k psychological support. Mental Stop Loss: (two b2b closes above) $4175.
*Equities and Cryptos are getting smashed as DXY and US Treasuries rally higher. Quite simply this is a response to global recessionary fears (amplified by last week's disappointing global economic data) and a commitment by the Fed to continue FFR hikes for the rest of the year. It seems as though investors are preparing for more hawkishness from Jerome Powell's upcoming speech in Jackson Hole on 08/26; which leaves tremendous surprise upside to markets if he gives any hints of dovishness. Key Upcoming Dates: S&P US August PMI at 945am EST 08/23; US Q2 Final GDP Estimate at 830am EST 08/25; US July PCE at 830am EST 08/26; UofM Final August Sentiment Survey Index at 10am EST 08/26; Jackson Hole Economic Symposium on 08/25-08/27.*
Price is currently trending down at $4138 and is still technically hanging on to $4175 support. Volume remains Moderate (high) and has favored sellers for two consecutive sessions; Price is currently trading in the second largest medium-term supply/demand zone on the chart. Parabolic SAR flips bullish at $4323 (this coincides with the 200 MA + the upper trendline of the descending channel from November 2021), this margin is neutral at the moment. RSI is currently trending down at 51 with no signs of trough formation and is technically testing 52.68 support; the next support is the uptrend line from 01/27/22 which coincides with 38 support. Stochastic remains bearish and is currently testing 18.32 support with no sign of trough formation. MACD finally crossed over bearish today after 56 days being bullish and is currently trending down at 74; the next support (minor) is at 55.35. ADX is currently trending down at 29 as Price continues to fall, this is neutral at the moment.
If Price is able to bounce here it will have to close above $4175 resistance to flip it back to support before it can attempt to retest $4254 minor resistance. However, if Price continues to break down here, it will likely retest the uptrend line from 06/16/22 at ~$4k psychological support. Mental Stop Loss: (two b2b closes above) $4175.