Rising Temporary Fragility

Powell didn‘t commit to any time specified rate cut, and S&P 500 disregarded JOLTS coming in no landing way. It was only NYCB (when it was almost simultaneously announced it raised fresh capital) and then BoJ hinting at policy normalization that sent equities lower late in the session and then some more.

Here are the most relevant analytical parts as I saw it this European morning in the channel:


Let‘s move right into the charts (all courtesy of www.stockcharts.com).

S&P 500 and Nasdaq Outlook

S&P 500 and Nasdaq

The key 5,088 level held in the premarket today, and then it soon became the question of how S&P 500 would fare in the 5,115 – 5,125 zone that should prove hard to overcome. 5,135 looks out of reach given that I expect low unemployment figure, which would hint some more at tomorrow‘s (unwelcome for the bulls) NFPs resilience.

More analytical details in the introduction – the bulk of today‘s upswing is over, and discretionaries falling yesterday, I consider a major red flag.

Gold, Silver and Miners

gold, silver and miners

Gold didn‘t present even the briefest of pullbacks lasting 1-2 hrs during Powell, which only hints at (banking and more) pressures under the surface, in what I consider as likely to geneerate rise in yields and especially the dollar from quite beaten down levels.

More By This Author:

Corrective Week
Rightful Caution Into Powell
Soft Landing Squeezing

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