Consolidation Now

S&P 500 did a brief intraday downswing yesterday – very fast erased. Bonds strong, market breadth further improving, FOMO almost kicking in – and then AAPL and AMZN earnings interpretation provided for a fresh upleg aftermarket. Stock prices are to stall somewhat next, but not to roll over into a new downtrend – not yet. There is time, and early next week isn‘t yet flashing even just amber. Likewise, the rally in precious metals is to continue, with miners still ridiculously inexpensive. Crude oil preparing for a new upleg in the $98 area while copper isn‘t giving up just below $3.50 either. Cryptos are signaling a weak entry to today‘s regular session, that‘s all – Monday is going to be a relatively good day across the board should today not turn out peachy (it won‘t be rosy, but won‘t be a disaster either).

Let‘s move right into the charts (all courtesy of – today‘s full-scale article features good 6 ones.

S&P 500 and Nasdaq Outlook

S&P 500 and Nasdaq

S&P 500 is looking good – a bit of backing and filling next wouldn‘t hurt, and the medium-term uptrend remains intact. The reactions to the latest earnings, guidance, and Fed, had been optimistic, and I see no reason to facilitate a sharp reversal early next week.

Credit Markets


HYG extended gains, and quality debt instruments joined in, yet the risk-on-turn is likely to get less pronounced today. It isn‘t over though, but bonds would facilitate a little consolidation in stocks next – one that didn‘t arrive yesterday, but appears knocking on the door timidly today.

Gold and Silver

gold, silver and miners

Precious metals posture has significantly brightened up, and the months ahead are looking really good now. Inflation unpleasantly high, yields down, dollar barely up – this is a good constellation. Sensing a Fed pivot.

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