Smashing Fed Day

Smashing Fed Day

S&P 500 turned decisively lower, with only a very brief spike that got reversed within an hour. No room for bullish misinterpretation, Powell didn‘t say really anything that could feed buy the dip sentiment – he delivered. Treasuries are getting accustomed to the soft landing not turning out so soft in the future actually – yields at the long end of the curve have finally turned down while Fed tightening keeps being reflected on the short end, and junk bonds are suffering.

In all the risk-off, the dollar was unable to hold on to sharp gains both yesterday and today, and together with the crypto premarket upswing and real asset resiliency, this points to a reprieve in paper asset selling later this week. SPX 3,825 is the key level to watch today. I like the message commodities and precious metals are sending here – once it gets accompanied by miners and oil sector stocks, things would get brighter, but we are not there yet. Suffice to say that sharp downside is being decisively rejected.

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Let‘s move right into the charts (all courtesy of www.stockcharts.com) – today‘s full scale article features good 6 ones.

Gold, Silver and Miners

  1. Smashing Fed Day - 1
  2. Silver did indeed well in the wake of FOMC, and gold looks fairly well bid here. The bears are definitely looking tired, and the direction for the next couple of days, is modestly up in the sector.

Crude Oil

Smashing Fed Day - 2

  1. Crude oil is looking very fine, carving out the protracted bottom before launching higher. The downtrend is simply long in the tooth.

Copper

Smashing Fed Day - 3

Copper is also fairly well bid, and odds are it would break higher from the range mentioned in the caption.

Bitcoin and Ethereum

Smashing Fed Day - 4

Cryptos are leading the risk asset retracement that‘s ahead, and the volume gives both Bitcoin and Ethereum a good chance of lasting through the weekend as a minimum.

Monica Kingsley

Monica Kingsley

Monica Kingsley is a trader and financial markets analyst. Checking dozens of charts daily, she integrates their messages with economics and in-depth experience. Trade calls and writing are her cup of tea as much as studies in market histories. Having been at the financial markets when the Great Recession arrived, she experienced many bull and bear markets - be it in stocks, bonds, gold and silver. Check her out at https://www.monicakingsley.co