The S&P finished the week down 4.79% after trading in a 316-point range. The S&P registered one of the largest weekly drops since 2020 closing at 3890. Price flushed as low as 3853 on Friday but finished the day about 37 points off the low. The catalyst for the weekly drop was higher than expected CPI data on Tuesday. Next week the market will turn it’s attention to the FOMC rate decision on Wednesday. A 75 bp hike is expected and Powell’s comments afterward will be closely scrutinized. Below are some points I am considering.
• S&P coming off a 4.79% weekly drop
• Inflation continues to be key metric to watch
• FOMC Rate decision on Wednesday!!
• Bias remains bearish
• Price closed the week below the key 3900 level
• Price currently below the 9/21/55 emas
• Price now sitting just above the 618 Fib (3888)
• Possibility of a compound corrective move down to 3767 if the 618 Fib is broken
• Downside target is now the June 17th low (3639)
• Upside target and resistance is 21/55 emas around (4043)
• Last two weeks of Sept historically week period for stocks
• Monday has been the weakest day of the week
• VIX holding at 26 so far.
WEEKLY EVENTS
Monday Canadian PPI
Tuesday US Housing Starts, Canadian CPI
Wednesday US Existing Home Sales, US EIA Crude & FOMC Interest Rate Decision
Thursday US Jobless Claims
Friday Canadian Retail Sales, Powell Speaks & US Manufacturing PMI Flash
NOTABLE EARNINGS
Monday AZO
Tuesday SFIX, OPOG
Wednesday GIS, KBH, LEN, TCOM
Thursday CCL, DRI, FDS, COST, FDX
Friday Nothing Notable
BULLISH NOTES
Oversold conditions
Pinbar close on Friday
Potential positive reaction to FOMC
Put/Call points to net short = potential reversal
Potential bond yield reversal
BEARISH NOTES
Strong bearish momentum
June 17th low may be price magnet
Potential negative reaction to FOMC
Negative sentiment = self fulfilling prophecy syndrome
Price below neutral/ 9/21/55 emas
Bond yields continue to rise
Below ascending trendline
Below 3900.
• S&P coming off a 4.79% weekly drop
• Inflation continues to be key metric to watch
• FOMC Rate decision on Wednesday!!
• Bias remains bearish
• Price closed the week below the key 3900 level
• Price currently below the 9/21/55 emas
• Price now sitting just above the 618 Fib (3888)
• Possibility of a compound corrective move down to 3767 if the 618 Fib is broken
• Downside target is now the June 17th low (3639)
• Upside target and resistance is 21/55 emas around (4043)
• Last two weeks of Sept historically week period for stocks
• Monday has been the weakest day of the week
• VIX holding at 26 so far.
WEEKLY EVENTS
Monday Canadian PPI
Tuesday US Housing Starts, Canadian CPI
Wednesday US Existing Home Sales, US EIA Crude & FOMC Interest Rate Decision
Thursday US Jobless Claims
Friday Canadian Retail Sales, Powell Speaks & US Manufacturing PMI Flash
NOTABLE EARNINGS
Monday AZO
Tuesday SFIX, OPOG
Wednesday GIS, KBH, LEN, TCOM
Thursday CCL, DRI, FDS, COST, FDX
Friday Nothing Notable
BULLISH NOTES
Oversold conditions
Pinbar close on Friday
Potential positive reaction to FOMC
Put/Call points to net short = potential reversal
Potential bond yield reversal
BEARISH NOTES
Strong bearish momentum
June 17th low may be price magnet
Potential negative reaction to FOMC
Negative sentiment = self fulfilling prophecy syndrome
Price below neutral/ 9/21/55 emas
Bond yields continue to rise
Below ascending trendline
Below 3900.
Nota
Price broke the bottom of the box after another failed test of 3900. The lower target was hit at the 1.272 Fib extension. This is also the completion zone for the bullish harmonic. I will watch for a bounce out of this zone tomorrow. Very bearish price action so the June 17th low is definitely in play. Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.