Yesterday in Australia.
XJO down -0.98%.
The past two days represent an emphatic rejection of the 50-Day and 200-Day Moving Averages. These two near neighbours on the chart are major markers of bearish trends. The 50-Day below the 200-Day is called a "death cross". It is not always a harbinger of a bear market as it is a lagging indicator, but, if the Index gets rejected after a test of that "death cross", it becomes a much stronger indicator. Expect more downside.
Last night in America.
Dow Jones -1.43%. SP500 -1.9%. Nasdaq -2.79%. Small Caps -0.22%. Banks -1.38%.
SP500.
SP500 is back below the 200-Day MA. The Supertrend (1.4/7) has switched from yellow to blue, indicating further downside. The index seems to be headed back down to major support around 4300. SP500 finished last night at 4419.
Commodities.
Commodities Index +1.49%. Energy +2.09%. Base Metals -1.53%. Gold +1.91%.
Flight to Safety. Gold and Bonds.
Fear is beginning to grip the American markets. With big falls in stock indices, we're starting to see money flow into safe havens, like Gold +1.91% (see above) and also Bonds. 20-Year Treasuries (TLT) were up +1.48%, the biggest move in TLT since last November, 2021. We haven't seen moves like this during the recent fall in the SP500 earlier this year.
When fear grips the market, it becomes irrational. Anything can happen. It can also disappear quickly depending on geo-political and economic events.
At this stage, however, we can expect more downside in stocks, until the fear factors are assuaged.
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