S&P 500 reversed right on cue yesterday, and the retreat before AAPL earnings was duly bought. Next, it was up to the run up to the non-farm payrolls – stocks froze with fear for which I saw no reason. We got no bad miss in NFPs, and that cleared the path to my a) scenario tweeted in advance. Sectoral performance was good enough already yesterday, and the path to resumption of stock market rise, is clear for today – with returning rotational strength. Subscribers of all three publications are benefiting – and as the notion of rising yields (Treasuries are to gain today) puts a check on projected USD appreciation path, we have that catalyst returning luster to real assets as well.
Let‘s move right into the charts – today‘s full scale article contains 2 of them.
S&P 500 and Nasdaq outlook
Not 4,515 is the support – tested, and held. 4,565 is though doable today even without your typical VIX crush Friday. 4,585 – 4,592 awaits for Monday latest. The retreat in defensiveness is all too palpable as my tweets series from this morning to NFPs shows.
Gold, Silver and miners
The path forward would be gradual – plenty of tightening and collateral hits biting other markets (courtesy of Japan‘s YCC move), so the humble goal is to carve out a convincing local bottom. For today at least, the buyers have the initiative.
Source: https://www.fxstreet.com/news/sp-500-reversal-and-sectoral-performance-202308041417