Horrible unemployment numbers and 3rd major trendline rejection
Our economy isn't showing a V-shaped recovery at all. In fact, the employment and economic data is not-so-subtly hinting at deeper rooted issues within our system. If only the Fed, Central Banks, and media would quit dismissing the bond market activity and yield curves as just some bizarre side effect of the Fed "rate cuts" and instead realize that those in the global finance and banking industry are pricing in deflation and a worse economic situation in our near future.
For now though, the S&P and Nasdaq are still bullish, but notice this piercing line formed at close today. Perfect rejection again of the 3-year major trendline, as well as failing to close back within the old trendline from March. People are going to be in a much different state of mind after the holiday weekend though, so it'll be interesting to see if this holds. Otherwise I'd expect a retest of the MAs. It's also interesting that this is about the middle of the BBs that it's bouncing off of, which means that there's still an underlying bearish favor here.
Something else pretty frightening that I noticed early:
The Dow Utilities is commonly referred to as a leading indicator for the market and generally the best market representation of the actual economy. Notice the almost perfect bearish pennant and the newly rejected 50 and 200 SMAs on the 4hr chart, and how they aren't crossing over. The daily looks even worse. This is a perfect bear market indicator, but the question remains how long the tech-heavy indexes can stay detached.
For now though, the S&P and Nasdaq are still bullish, but notice this piercing line formed at close today. Perfect rejection again of the 3-year major trendline, as well as failing to close back within the old trendline from March. People are going to be in a much different state of mind after the holiday weekend though, so it'll be interesting to see if this holds. Otherwise I'd expect a retest of the MAs. It's also interesting that this is about the middle of the BBs that it's bouncing off of, which means that there's still an underlying bearish favor here.
Something else pretty frightening that I noticed early:
The Dow Utilities is commonly referred to as a leading indicator for the market and generally the best market representation of the actual economy. Notice the almost perfect bearish pennant and the newly rejected 50 and 200 SMAs on the 4hr chart, and how they aren't crossing over. The daily looks even worse. This is a perfect bear market indicator, but the question remains how long the tech-heavy indexes can stay detached.
It's a tale of two stories right now. There are a lot of people going back to work because their job was temporarily unavailable because of the virus, but there are also a ton of people that are losing their jobs every week now because of economic conditions. And THAT's the key to this whole situation.