SPY breadth and hawkish Fed talk

Monica Kingsley Monicakingsley

S&P 500 defended 4,515 and 4,507 alike, and ignored hawkish Barkin talk. Surging through 4,535, and ultimately reaching my intraday channel target of 4,565 meant more gains for intraday and swing trading clients alike – just when market breadth improved noticeably again.

This leads to the valid question of how far away is the top – is the Q4 rally slowly getting over, and if not then what would be the shape of the upcoming correction?

Today‘s full analysis answers these questions while illustrating the short-term with NVDA chart, predicting earnings market reaction.

Let‘s move right into the charts – today‘s full scale article contains 6 of them, featuring S&P 500, NVDA, credit markets, precious metals and oil.

Stocks and sectors

Market isn‘t expecting a downside NVDA surprise, and is actually priced for a muted reaction that would be neither as bullish as May earnings, nor as bearish as Aug ones – in between rather as the grind higher won‘t be disrupted much really.

Credit markets

Credit markets also continue favoring bonds going up some more – I‘ve been telling you about a turn in rates (TLT) later this year. The daily HYG weaker close though hints at a brief consolidation in stocks.

Gold, Silver and Miners

Precious metals continue being bullish – yesterday‘s daily candle bodes well for such upswing continuation that would take out $2,000 with ease.The decline in silver isn‘t likewise to be feared – see base metals and how well copper is doing too. More to come – I‘m not warning about a daily downswing.

Author

Monica Kingsley

Monicakingsley

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

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