This is my take on the SPY ETF and SPX. It seems though there was much buying near the support, many other market participants or the CO (composite operator) was off loading--or even initiating short positions-- these shares.
There are many economic hints that point us into the conclusion of a Recession--Yet of course recessionary news is posted every day even in a bull market.
However, as a National factor for the US, Interest Rates have been on a rise. Inflation expectation is also on the rise as the FED continues to look forward to rate hikes in the future. Taxation--as one of the options-- may increase as to RID excess money from our system, thus Unemployment should increase as many companies are forced to lay-off their employees. Additionally, with the increase of interest rates this causes housing values to decline rapidly. With housing still in demand now, new housing ownership should decline slowly, as many cannot afford the interest rates on a loan to build or buy housing.
Housing Ownership and Stock market Prices really do not have a correlation, nor does Stock price and GDP. However, Interest rates have a correlation with nearly all Industrial and Stock Effects.
My Bias Is Bearish: This is Soley due to The Technical Aspect. There was existing support however was quickly reversed as resistance-- The offloading of Institutions who entered on the wrong side of the market--forcing a liquidation of their assets at break even or lower. THUS, the backup move was essential for the market to mark down to lower prices. It seems that it will be a slow process of a continuous move lower.
There are many economic hints that point us into the conclusion of a Recession--Yet of course recessionary news is posted every day even in a bull market.
However, as a National factor for the US, Interest Rates have been on a rise. Inflation expectation is also on the rise as the FED continues to look forward to rate hikes in the future. Taxation--as one of the options-- may increase as to RID excess money from our system, thus Unemployment should increase as many companies are forced to lay-off their employees. Additionally, with the increase of interest rates this causes housing values to decline rapidly. With housing still in demand now, new housing ownership should decline slowly, as many cannot afford the interest rates on a loan to build or buy housing.
Housing Ownership and Stock market Prices really do not have a correlation, nor does Stock price and GDP. However, Interest rates have a correlation with nearly all Industrial and Stock Effects.
My Bias Is Bearish: This is Soley due to The Technical Aspect. There was existing support however was quickly reversed as resistance-- The offloading of Institutions who entered on the wrong side of the market--forcing a liquidation of their assets at break even or lower. THUS, the backup move was essential for the market to mark down to lower prices. It seems that it will be a slow process of a continuous move lower.
