No rocking the boat

Monica Kingsley Monicakingsley

S&P 500 defended my 3,955 level by stopping full 10 pts above it, and turning up swiftly. The rise was accompanied by good breadth, and ducks lined in a row when it comes to former laggards (tech), high betas incl. financials and just broadly speaking value stocks, and smallcaps with the dollar remaining tame. Bonds also didn‘t present any red flags.

And with TSLA earnings really good yesterday, then GDP not decelerating nearly as fast enough as anticipated, PCE prices advancing and GDP deflator coming above expectations, the table is set for the Fed to miss a good tightening opportunity next week as durable goods data also attests to (which the markets would just love to see short-term) – compare against the following summary dating back to before today‘s data batch became available.

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Let‘s move right into the charts.

S&P 500 and Nasdaq outlook

S&P 500 moved out of the hot water, and the bear market rally can continue. 4,040 is to get in rear view mirror on today‘s close, and I would be eyeing the 4,080 – 4,085 area as the nearest solid resistance target (ultimately followed by my 4,130 of September CPI fame).

Credit markets

No warning signs here, and the still reasonably fine real economy data of today, should help bonds to clinch a risk-on close. HYG is to outperform TLT today – and the most sensitive real assets will like it!

Author

Monica Kingsley

Monicakingsley

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

EUR/USD hits two-day highs near 1.1820

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GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

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Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

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