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

In the very short-term, there does look to be a chance for a bit more technical selling as a result of Wednesday’s decline.  Equity index uptrends were broken and breadth came in very heavily negative.  Moreover, the minor breakout in US Dollar as well as US Treasury yields will need to show some evidence of stalling and reversing course.  Overall, I don’t see the potential for more than a 1.5-2% decline from here, and SPX should find strong support near 5100 before turning back higher.   In the bigger scheme of things, the next big move should be higher, not lower, yet one has to allow for a big more weakness to complete this recent pattern.   Neither NASDAQ, nor SPX cash have broken last week's lows yet to match what happened in Futures markets, so this remains important to keep an eye on.

CPI’s upside surprise likely postpones the immediate snapback rally in Equities, and a bit more weakness looks possible in both Equities and Treasuries before a rally can get underway.

The sharp rise in US Dollar along with US Treasury yields broke near-term resistance levels and arguably might result in US 10-Year Treasury yields climbing up to 4.63% or a max near 4.70% before the start...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Don't Miss Out
First Month Free