SPY Buyers, Still Beware
S&P 500 shutdown avoidance news was sold into, and as I tweeted real time, stocks were about selling into head fakes yesterday. Not only my 4,315, but also 4,307 and 4,298 supports were tested. Yet another late day squeeze has been and is being sold into – and today‘s outlook remains the same as yesterday‘s, for yields and USD direction haven‘t really changed (still nice enough though to make a good intraday move for clients).
Those counting on JOLTS would be ultimately disappointed – combined with rated, USD and financial conditions, these have allowed me to make bearish precious metals calls for premium clients that resulted in a smooth $100 move down from the $1,940s all the way here. Another important update on real assets awaits in today‘s analytical section.
S&P 500 and Nasdaq Outlook
(Click on image to enlarge)
4,330 – 4,340 aren‘t on the table unless JOLTS convince that the Fed must ease (it won‘t), therefore I‘m rather looking at gradual selling resumption as indicated by poor market breadth, sectoral dynamics and HYG showing. 4,260 would be a pleasant surprise – and can be reached if the real economy proves still relatively resilient.
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