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Big week ahead

S&P 500 charge higher continued, and high beta plays didn‘t disappoint. Energy, financials, Russell 2000, emerging markets – all on fire. After Thursday‘s climb of bear market rally wall of worry (we‘re rather to meet recession and not soft landing – the contraction will be mild till Q3 2023), we‘re in for a daily deceleration today as I don‘t think yesterday‘s complacency would last till the closing bell.

The weakness will likely show up in bonds first, underpinning the dollar – and the rest would be history. All on a daily basis – you can look forward for extensive pre-FOMC analysis next week!

Keep enjoying the lively Twitter feed serving you all already in, which comes on top of getting the key daily analytics right into your mailbox. Plenty gets addressed there (or on Telegram if you prefer), but the analyses (whether short or long format, depending on market action) over email are the bedrock.
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Let‘s move right into the charts.

S&P 500 and Nasdaq outlook

Chart

S&P 500 bulls will have to defend yesterday‘s initiative - 4,040 is the first line of support, followed by (high) 4,010s. Any downswing attempt is though likely to be confined to the roughly mid point of this two strong supports‘ range. I don‘t think 4,075 would be overcome today.

Credit markets

Chart

Bonds give me a pause – we‘re likely to see stocks play defence first, especially on another housing data release (disappointment).

Author

Monica Kingsley

Monica Kingsley

Monicakingsley

Monica Kingsley is a trader and financial analyst serving countless investors and traders since Feb 2020.

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