S&P500 Peaked 4800, with pull backs to 4630.
Current pullback to 4300 and we're seeing a huge drop to close the week. China's earnings report brought some storm to the market, shaking the bear rally.
1. Inflation has not gotten any better - it just stayed flat MoM
2. Rate hikes expected to continue to tackle inflation
3. Market structure still maintaining a down trend
4. Although oil prices had a hard dip but prices are still high compared to prior year. Fairly bullish last 2 days, closing the W candle with a huge bottom wick. If this continues, expecting a higher CPI which will signal inflation still on the table. Energy troubles coming at year end with the winter season. Energy troubles in China, and also many other countries.
5. A lot of news of surrounding lay-offs, being on the cards. Some companies already played the card.
And, of course there are more factors pointing to a bearish market. Looking at debt, and the commodity dips. Probably going back to risk-off season, holding the dollar with the expectation of continued rate hikes.
Looking to short S&P at key price levels if 4300 holds, alongside market structure. Economic conditions are messy in this current period.
Stay adaptive.
Current pullback to 4300 and we're seeing a huge drop to close the week. China's earnings report brought some storm to the market, shaking the bear rally.
1. Inflation has not gotten any better - it just stayed flat MoM
2. Rate hikes expected to continue to tackle inflation
3. Market structure still maintaining a down trend
4. Although oil prices had a hard dip but prices are still high compared to prior year. Fairly bullish last 2 days, closing the W candle with a huge bottom wick. If this continues, expecting a higher CPI which will signal inflation still on the table. Energy troubles coming at year end with the winter season. Energy troubles in China, and also many other countries.
5. A lot of news of surrounding lay-offs, being on the cards. Some companies already played the card.
And, of course there are more factors pointing to a bearish market. Looking at debt, and the commodity dips. Probably going back to risk-off season, holding the dollar with the expectation of continued rate hikes.
Looking to short S&P at key price levels if 4300 holds, alongside market structure. Economic conditions are messy in this current period.
Stay adaptive.
