Time running out
|S&P 500 rally didn‘t catch second breath before the closing bell, and bonds aren‘t favoring it to continue. There is no risk-on constellation anymore, and the broad selloff on growth slash recession worries, has driven both oil and copper down from their botom searching patterns. Treasuries are also demanding more action from the Fed, and the central bank would oblige. I expect Powell to downplay the effects on real economy. Not good, and the speed of recent price action – especially when the failure to gain similar traction to stocks in recent days – is considered. Precious metals are to keep up best, and I mean gold and miners here. Cryptos and economically sensitive commodities are to remain under pressure, and the failure of oil to put in a floor yesterday, is worrying. Gotta respect the price action even though black gold hasn‘t peaked, and a much bigger crisis is brewing – one not to be solved with some gas tax holidays.
For the full macro details, please check yesterday‘s extensive analysis if you haven‘t done so already.
Let‘s move right into the charts.
S&P 500 and Nasdaq outlook
Today‘s closing prices would reveal sharp and ongoing deterioration. The reprieve is over after a few measly days.
Credit markets
Setting the tone, setting the tone – and it‘s one of shrinking liquidity – but the turn in long- dated Treasuries higher, is approaching. It‘ll be in recognition of darkening economic prospects.
Gold, silver and miners
Precious metals sector would hold up best, gold with miners look cushioned against further declines. Namely given the following charts‘ posture.
Crude oil
Crude oil had the hallmarks of a local bottom, and given that it‘s not holding in today‘s trading, the Powell testimony is likely to add to the short-term pressure regardless of China being hungry for more black gold.
Copper
For many weeks, I had the greatest reservations about copper, and its chart posture has turned ugly. I don‘t see the Fed pivoting yet, or markets moderating their downswings in anticipation thereof.
Bitcoin and Ethereum
This bottom searching isn‘t over, and cryptos are likely to keep declining, which has been in line with one of my calls of late.
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.