Selling might not abate until post Jackson Hole; Top Retail names to consider technically Array ( [cookie] => 036ab8-6547a6-cf8512-7b95b8-269f28 [current_usage] => 2 [max_usage] => 2 [current_usage_crypto] => 2 [max_usage_crypto] => 2 [lock] => 1 [message] => [error] => [active_member] => 1 [subscriber] => 0 [role] => fsi_macro [visitor_id] => 591084 [reason] => [method] => ) 1
Markets have largely exited the early month window when a low was possible. While a counter-trend snapback is possible at any time, the trend remains negative in the short run Both Treasuries and Equities show a possible time-based window for a turn in late August which could turn out to be the pivot for the much anticipated Low for Stocks and Bonds.
US Equity indices have continued lower at a time when a low was thought possible, and momentum has begun to worsen on a weekly basis as this decline has become a bit more broad-based. This prolongs the decline and means that lows are likely premature. A couple key points:
- This decline has proven very orderly and not too abrupt. SPX still is down just -3.5% from peaks made in late July. This hasn’t proven too technically damaging. However, weekly momentum has begun to wither, and weekly MACD is now negative for QQQ.
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