We got hit in multiple directions today. First, the foray of economic data came in and they were so good that investors started, once again, freakin gout that this may force the FED to keep the rates higher for longer (good news is bad news). Then, we received reports from Walmart and Target. They were good, but the guidance was bad suggesting that the consumer may be pulling back with spending. Instead of cheering it, investors freaked even more that we are going into recession (bad news is bad news). And we are not done here. Tomorrow, we will get hit by FOMC, GDP, and PCE reports. That can be sparky out there…
So, the market dropped 1.66% today. And it may go actually lower, all the way down to the 200-day MA. So far we have found support slightly above $4,000 support but if tomorrow we get more bad news (good news that is bad) we may slide below swiftly. Now the daily Ichimoku chart looks really weak and bad suggesting that there will be more selling momentum.
The weekly Ichimoku now looks better. Not that it improved, but because it holds the trend. But that may change very soon and very quickly:
As I suspected, the weakness was flashing everywhere and the bullish stance was unlikely. We ended in the red. And although tomorrow’s forecast is also bullish, I expect either a red day or flat. This can be significantly changed by tomorrow’s FOMC meeting. Therefore I do not expect anything from this market.
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