Mideast fears and hot PPI
|S&P 500 held up great into the opening bell, and then a heavy hourly pounding during the retail hour came – what‘s most encouraging, is though the steady grind upwards once the first hour after the open, was over. I ascribe much of it to deleveraging as heavy selling hit foremost gold and silver. You know those kinds of slams from prior years…
Both stocks and metals rebounded, yet started to roll over before the Asian session. S&P 500 and Nasdaq didn‘t decline below yesterday‘s panic lows, but gold and silver did.
Present volatility is tough to manage unless you adjust position sizing downwards – reversion to the mean takes you only so far… we caught with clients the gold rebound yesterday, but today premarket a $60 stop-loss means nothing, I declared already which assets I see more likely as score gains today.
That takes me to tech long (intraday) and yesterday‘s intraday update for S&P 500 close to the lows when recovery was already underway – RSI bullish divergence today premarket worked second time its magic, and clients see multiple limited risk dipping long, as solidly working off. The same picture is what various Fibonacci retracements off yesterday‘s lows paint.
The dollar is only modestly benefiting from the turmoil that had taken focus off really good tech earnings this week – any serious Mideast clash would take its toll on equities – volatility is still set to rise, with markets extremely sensitive to military buildup and strong declarations...
Here you are the daily Trading / Stock Signals S&P 500 chart.
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