Peculiar FOMC Minutes reaction
|S&P 500 ignored soft landing supprotive data (JOLTS, manufacturing PMI), and instead sold off following – not on – FOMC minutes even if these contained slowdown of the balance sheet shrinking. Russell 2000 took the key hit, and it was led by regional banks rather than biotech, in a way connected to the XLRE (meaning real estate – commercial and not necessarily single family homes).
Meanwhile the 30 min, 4 hour and daily ES charts are screaming still danger and dust unsettled ahead even if VIX duly retreats (except yesterday, closing above 14) – my first 4,755 support level is slowing the descent, but 4,735 is to act as a magnet, especially considering continued (big) tech weakness and smallcaps not catching their breadth.
Ignore not the USD upswing and rise in yields over the last couple of days either – more than tax selling seems to be going on. And as regards today‘s data, here‘s my commentary from our intraday channel.
Let‘s move right into the charts – today‘s full scale article contains 2 of them, featuring S&P 500 and precious metals.
S&P 500 and Nasdaq outlook
Wave goodbye to the 4,755 support slowing the sellers, here comes the 4,735. It‘s been a relatively uneventful day yesterday, marked chiefly by incoming data and minutes which should have worked for the buyers, but didn‘t – and that‘s in itself telling, caution warranting.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.