Before the drop
S&P 500 duly reversed as I called for it intraday to do. Not that the message from bonds or the dollar would be more optimistic really – for the bulls I mean. Whatever ground the buyers recovered yesterday, was defensive in nature as yields continue rising even on the long end of the curve. No top in yields – that‘s not a bullish message for stocks. As I have written an extensive analysis on Monday, and yesterday presented the key idea that may drive an upswing attempt that would be sold into, I‘ll concentrate on live Twitter updates around the FOMC such as this feel of the market pulse (with intraday updates on my site should trading decisions need to be updated, of course).
Gold, silver and miners
Silver will shake off any FOMC blues easier than gold, and the direction miners take, would determine the next move in the whole sector. Miners rising could be equated to doubts about the Fed vs. soft landing as much as rising yields.
Crude oil
Crude oil will be least affected today (this could turn into an understatement), and not only because of the news from Eastern Europe. Looking for the upswing to slowly gather pace over the coming weeks.
Copper
Copper is still going sideways, and I don‘t see a deep flush as likely this week at all.
Bitcoin and Ethereum
Cryptos will likely join in the temporary jubilation that‘s ahead, but will decline once the true hawkish Fed message gets acknowledged for what it is.
Author
Monica Kingsley
Monicakingsley
Monica Kingsley is a trader and financial analyst serving countless investors and traders since Feb 2020.
