S&P 500 decisively turned around, and declined powerfully. The short entry was well placed, and open profits are likely to grow still before the bottom is reached. What we‘re likely to experience next, is tech-driven brief reprieve, which would help cushion heavy S&P 500 downside temporarily. The stock market downswing hasn‘t run its course though today‘s rising real asset prices would help the bulls temporarily.

The dollar of course isn‘t really retreating, and neither the pressure on the Fed to raise, is relenting – yet precious metals keep holding up reasonably well. Is there a quiet money flow underway, one that sees long-dated Treasuries benefiting as well? I think so, and come autumn, this would become obvious. Crude oil apparently hasn‘t peaked either, no matter what those focusing solely on the real economy prospects say – remember, black gold is the one to top last, and I hadn‘t seen a decent spike yet. Time to go, for quite a few weeks more – and let the open profits grow too.

Let‘s move right into the charts.

S&P 500 and Nasdaq outlook


The caption says it all – S&P 500 is primed to decline some more, but I‘m looking for a little counter trend move first. Odds are the bulls won‘t make it far.

Credit markets


Bonds turned risk-off, and soundly so. Especially the HYG move holds great promise. As you can see, the TLT downswing is in its latter innings, and in need of some consolidation (one that would coincide with deteriorating economic data showing so) first.

Crude oil


Oil is turning up, the next consolidation to arrive, would happen above the 50-day moving average. I like oil stocks having come to life (against the background of steep stock market decline) particularly.

Bitcoin and Ethereum


Business as usual in cryptos – business just as lately. See how far Stochastics has risen while prices are already turning down. The weeks ahead appear one hell of a ride.

All essays, research and information represent analyses and opinions of Monica Kingsley that are based on available and latest data. Despite careful research and best efforts, it may prove wrong and be subject to change with or without notice. Monica Kingsley does not guarantee the accuracy or thoroughness of the data or information reported. Her content serves educational purposes and should not be relied upon as advice or construed as providing recommendations of any kind. Futures, stocks and options are financial instruments not suitable for every investor. Please be advised that you invest at your own risk. Monica Kingsley is not a Registered Securities Advisor. By reading her writings, you agree that she will not be held responsible or liable for any decisions you make. Investing, trading and speculating in financial markets may involve high risk of loss. Monica Kingsley may have a short or long position in any securities, including those mentioned in her writings, and may make additional purchases and/or sales of those securities without notice.

Feed news Join Telegram

Recommended Content

Recommended Content

Editors’ Picks

AUD/USD clings to gains above 0.6900 amid damp mood

AUD/USD clings to gains above 0.6900 amid damp mood

AUD/USD is holding onto the recovery mode above 0.6900 amid a risk-off mood during Monday’s Asian session. The Sino-American tension over Taiwan and aggressive Fed tightening bets challenge the pair buyers after Friday's US NFP blowout. 


EUR/USD: Bears moving in across the timeframes

EUR/USD: Bears moving in across the timeframes

The EUR/USD price on the weekly chart has corrected to a 50% mean reversion of the prior weekly sell-off. Last week's sell-off could be the start of the bearish extension. On the daily chart, the price has left behind a failed inverse head and shoulders.


Gold slides towards $1,750 as Fed, Taiwan concerns favor DXY bulls

Gold slides towards $1,750 as Fed, Taiwan concerns favor DXY bulls

Gold price remains pressured near $1,773, down 0.10% intraday, as risk-aversion underpins the US dollar’s safe-haven demand during Monday’s Asian session. Also keeping the greenback buyers hopeful are the recently increased hopes of Fed 0.75% rate hike in September.

Gold News

LUNA price approaches a launchpad, but will buyers come together?

LUNA price approaches a launchpad, but will buyers come together?

LUNA price is in cooling down after its recent 41% explosive move. A bounce off the $1.85 to $2.08 demand zone could induce another rally to 2.80. A daily candlestick close below $1.85 will invalidate the bullish take.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!