The video in this report is only accessible to members
The video in this report is only accessible to members

Ahead of this week’s Fed meeting, Monday’s minor relief rally took prices right back to areas of September’s breakdown, which at $SPY-389 is thought to be quite important resistance.  Given that US 10-Year Treasury yields set new daily 2022 closing highs Monday above 3.475% at 3.49%, it’s thought that ongoing negative correlation with US Stock indices likely limits Equity gains heading into one of the worst seasonal stretches of the year.   Industrials, Discretionary and Materials all rose more than 1% in trading, while other groups like Healthcare and Energy dropped off sharply to lag in performance.  Moreover, Technology continued to show underperformance and has lagged all other major S&P groups over the last month, with $XLK lower by more than 12% on a rolling one-month period.  Bottom line, this remains a challenging period and should be difficult for bounces to gain much traction between now and early October. Any decline back under $SPY-382 likely takes prices down to at least 370, but more likely at a zone of support between 362-365 into early October. 

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