Imminent Bounce Happened, Now Caution Ahead
SPX 5100 and IWM 200 are key levels for rejection/recovery
Recap
✅ SPX held 5000 and with Daily RSI at 30, the imminent bounce came
New 52-Week Highs vs New 52-Week Lows
NYSE New 52-Week Highs: 64 vs New 52-Week Lows: 15
Nasdaq New 52-Week Highs: 58 vs New 52-Week Lows: 87
Nasdaq is not quite out the woods yet.
*This my personal blog and is not investment advice—I am not a financial advisor but a random person on the internet who does not have a license in finance or securities. This is my personal Substack which consists of opinions and/or general information. I may or may not have positions in any of the stocks mentioned. Don’t listen to anyone online without evaluating and understanding the risks involved and understand that you are responsible for making your own investment decisions.
Today
I pointed out 2 key narratives:
If Fed keep rates for longer and doesn’t cut, WE ARE GOOD because the economy is humming along.
If the Fed starts to telegraph more hawkish and signals willingness to RAISE RATES then we’re getting something more bearish than simple rotation. And with the market starting to price in rate hikes, it’s a narrative that is being taken more seriously.
This narrative is a risk and if it continues gaining more steam we are going into a correction.
Options market are pricing in a 1/5 chance of rate hike and this shift in expectations has hit the bond market as well as mortgage rates.
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